Discovery had a failed cycle in week 32, now we can expect price to confirm a weekly low as it is within the timing band. The resistance line confirms such when we close above it on a weekly basis.
We can expect price to consolidate on arrival at this resistance or breakout then backtest. A rejection at this level would mean we wait and watch where it lands, lower than 12 May means another failed daily cycle & testing of the support.
We can expect price to consolidate on arrival at this resistance or breakout then backtest. A rejection at this level would mean we wait and watch where it lands, lower than 12 May means another failed daily cycle & testing of the support.
Comment:
DSY is currently seeking a half cycle high, the indicators show that it is overbought, not an idea scenario. We would not want it to go lower than 28 June price in this correction as that would tilt the cycle to the downside.
Comment:
Discovery looks vulnerable going into earnings report, price to watch is R145.46, lower than that then we are in weekly decline. Indicators though are not in an area of immediate short position opening. There is a chance that earnings will trap news buyers to the upside before beginning weekly cycle decline.
Trade closed manually:
New trade idea posted