Despite the recent rally in the FTSE 100, Diageo has lagged the market. However, potential buyers may come in around 1757 as this is:
1-the base of the tram line I have drawn in. Tramlines offer great low risk entries and you can often anticipate where the price will bounce by locating a trend line and then drawing a parallel one through the lowest low like I have here around 1700.
2- the 1757 area has been a level of support in the past-see olive circles
3- the 1757 area completes an A-B-C corrective wave where A and BC are equal in length
4- the Stochastics are oversold and showing a little divergence
Target of 1950-2000 depending on market structure up to this point.
Stop at 1720 for a low risk trade.
This is just an opinion, not a trading tip. Lets see what happens!
1-the base of the tram line I have drawn in. Tramlines offer great low risk entries and you can often anticipate where the price will bounce by locating a trend line and then drawing a parallel one through the lowest low like I have here around 1700.
2- the 1757 area has been a level of support in the past-see olive circles
3- the 1757 area completes an A-B-C corrective wave where A and BC are equal in length
4- the Stochastics are oversold and showing a little divergence
Target of 1950-2000 depending on market structure up to this point.
Stop at 1720 for a low risk trade.
This is just an opinion, not a trading tip. Lets see what happens!