Netdragon...A red candle for Netdragon! WOW!
Hello Traders,
Netdragon is showing weakness. After a long bull-ride, that started at January we have 4 red candle`s at the daily chart and the first red candle on a weekly basisi this yeat. A rare case for this stock.
Observe at chart, that the move to the new high (@ 24.50) was accompanied by declining volume, whichis typicall for a wave „5“ or „c“ of any degree.
Note, that the move to 24.50 was embedded in a trendchannel I have drawn at chart and a „trust“ is still to obsserve. After the return into the channel it is quite possible that Netdragon is moving to the lower boundayline of the channel a@ 21.- area. A brek of the lower line could open the door to the low at 18.- (closing) and 18.30 (intraday low)!
Thursdays closing price was @ 21.95, (5 Cent below the 0.382 Fibonacci (18-24.50) and Fridays close was well above (@ 22.30) showing a „flat“candle, a „doji“ often interpret as a candle of „uncertainty“! Any close, at minimium on a daily basis below the .382 Fibonacci will open the door to 21.25-20.50-19.45 zone.
The classic indicators return to neutral position, had left the strong „overbought“ areas, or the trending areas (depending from which point of view to interpret) this behavior.
So, the door is open to both side of the chart, down within a corrction, or up in direction of trend.
I will update the chart if anything new occurs.
Have a great Sunday
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
Netdragon is showing weakness. After a long bull-ride, that started at January we have 4 red candle`s at the daily chart and the first red candle on a weekly basisi this yeat. A rare case for this stock.
Observe at chart, that the move to the new high (@ 24.50) was accompanied by declining volume, whichis typicall for a wave „5“ or „c“ of any degree.
Note, that the move to 24.50 was embedded in a trendchannel I have drawn at chart and a „trust“ is still to obsserve. After the return into the channel it is quite possible that Netdragon is moving to the lower boundayline of the channel a@ 21.- area. A brek of the lower line could open the door to the low at 18.- (closing) and 18.30 (intraday low)!
Thursdays closing price was @ 21.95, (5 Cent below the 0.382 Fibonacci (18-24.50) and Fridays close was well above (@ 22.30) showing a „flat“candle, a „doji“ often interpret as a candle of „uncertainty“! Any close, at minimium on a daily basis below the .382 Fibonacci will open the door to 21.25-20.50-19.45 zone.
The classic indicators return to neutral position, had left the strong „overbought“ areas, or the trending areas (depending from which point of view to interpret) this behavior.
So, the door is open to both side of the chart, down within a corrction, or up in direction of trend.
I will update the chart if anything new occurs.
Have a great Sunday
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!