Arlo Macro Bullish Case + Ascending Channel trade setup
Hi Guys. As always im on the look out for Macro opportunities in assets with market structure or patterns that scream "Pay Attention to me".
One that stood out to me was ARLO.
This analysis is on the 1 week timeframe.
Notice the Orange rectangle. This zone is a MAJOR Support/ Resistance zone.
When Arlo went Public, we started ABOVE this zone.
Then made our way to the zone, attempted to maintain SUPPORT but eventually fell through and most of price action stayed Below the Zone since 2019.
We had many attempted to test the Zone and try to breakout with little to no luck in:
1. Feb 2021
2. Dec 2021
3. Feb 2022
4. July 2023
5. Sept 2023
UNTIL RECENTLY in March we made our way ABove this zone
We then came down to the bottom fo the zone and confirmed Support. With our current weeks candle up 11% indicating a BUllish Engulfing candle and MAJOR DEMAND.
I believe we are now on our way to test the Upper resistance limit of the Blue Ascending Channel that Arlo seems to be in.
After which we will attempt a Major Support test of the Zone.
Its also IMPORTANT to note, Above the zone, very little data exists. Meaning that theres very little resistance Above. This could fuel an extended Bull run for ARLO to New Highs.
But keep in mind specific signals or signs are needed.
Keep an eye for updates on further signs/ clues to take into consideration to help us make informed decisions!
__________________________________________________________________________________
Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again.
Stay tuned for more updates on ARLO in the near future.
If you have any questions, do reach out. Thank you again.
DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy.
One that stood out to me was ARLO.
This analysis is on the 1 week timeframe.
Notice the Orange rectangle. This zone is a MAJOR Support/ Resistance zone.
When Arlo went Public, we started ABOVE this zone.
Then made our way to the zone, attempted to maintain SUPPORT but eventually fell through and most of price action stayed Below the Zone since 2019.
We had many attempted to test the Zone and try to breakout with little to no luck in:
1. Feb 2021
2. Dec 2021
3. Feb 2022
4. July 2023
5. Sept 2023
UNTIL RECENTLY in March we made our way ABove this zone
We then came down to the bottom fo the zone and confirmed Support. With our current weeks candle up 11% indicating a BUllish Engulfing candle and MAJOR DEMAND.
I believe we are now on our way to test the Upper resistance limit of the Blue Ascending Channel that Arlo seems to be in.
After which we will attempt a Major Support test of the Zone.
Its also IMPORTANT to note, Above the zone, very little data exists. Meaning that theres very little resistance Above. This could fuel an extended Bull run for ARLO to New Highs.
But keep in mind specific signals or signs are needed.
Keep an eye for updates on further signs/ clues to take into consideration to help us make informed decisions!
__________________________________________________________________________________
Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again.
Stay tuned for more updates on ARLO in the near future.
If you have any questions, do reach out. Thank you again.
DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy.
Comment:
ARLO update on 1 week.
We are in the process of forming a Large Upper Wicked Candle if we continue and close at the end of today.
This shows we've hit a SUPPLY zone and are selling off.
It is probable that we Re-test Support at the Major Resistance zone we broke up from around $11.50.
Its a MAJOR area so it makes sense we come back down to test and confirm Support.
That area would be key area. Important to maintain it for further upside.
ARLO update on 1 week.
We are in the process of forming a Large Upper Wicked Candle if we continue and close at the end of today.
This shows we've hit a SUPPLY zone and are selling off.
It is probable that we Re-test Support at the Major Resistance zone we broke up from around $11.50.
Its a MAJOR area so it makes sense we come back down to test and confirm Support.
That area would be key area. Important to maintain it for further upside.
ARLO looking good since last week.
Notice the breakout past this short-term Resistance trendline.
My target stands at around $17.00, from current prices thats a 20% increase.
To support this look to my 2 indicators.
I like to use these to determine momentum in the markets.
STOCH RSI -> showing BULLISH CROSS. As long as we maintain this cross, price will continue UP. Expect this to move Above the 80 lvl. (Bullish cross is when Blue line is Above Orange line).
MACD, showing widening of the mouth of the Bullish cross. There is also increasing of the size of the GREEN histogram bars. We are also ABOVE the 0 lvl. As long as we are crossed Bullish and ABOVE 0 lvl. Prices will continue UP.