KAVL Swing game plan (SHORT TERM)
Swing play with price targets $3.80 / $ 4.42
Pros to enter :
1) For the past 8 days KAVL has been moving up showing higher highs and higher lows .
2) As you can see from the chart 20MA (white line) showing strong support
3) 20MA technically became a trendline and been tested 4 times (trend line must be tested 2 times to be formed and 3 times to be confirmed )
4) Volume for the past few days confirmed the price movements-strong volume.
5) Late news are positive as well.
6) Also KAVL is belongs to CONSUMER DEFENSIVE group of stocks and that group has have been in the top 3 performing groups for the past 6 moth
7) Also KAVL is located right below the big gap ranging from $2.87 to $4.42 (bottom of that gap got tested today) , "middle" of that gap is located on $3.80 level (look at 4 H chart OCT 21, 2021 move)
8) From the bottom of the gap all way to the top of the gap not much activity (check VPVR indicator on 1D)
9) Most of the market is moving down but KAVL is moving up.
10) Approximately around $2.07 area lays first line of support 50MA on 30 min time frame / 20MA on 1 hour time frame (both MAs are located at exactly the same spot)
Cons to enter :
1) Crazy, volatile market
2) Move to the 20MA was very volatile compare to other 3 spikes ( Reason to be concern?)
3) Bottom of the gap (DARK RED RECTANGLE above the market) got tested 4 times on 1H and got rejected.
4) RSI and other indicators I use in oversold zone, but on June 1st 2021 KAVL remained in RSI oversold zone for 17 days and continued to make move to the upside
same thing happened on JAN 11 2021 it stayed in oversold zone 'till February 2021 and continued moving higher and higher (will it be the same this time?)
Is that a PRO or CON ?
Action :
KAVL must bounce from the 20MA line (on 1H) ,move past the ORANGE DOTTED line (resistance) and establish support or shoot past it
First resistance line (before it will close the gap) will be at around $2.95 (prev high), then $3.80 (that is the level at which it got rejected to the downside on OCT 21 2021 (LOOK AT 4h CHART )
If after rejecting from $3.80 KAVL establish support at $ around $2.90-$3, the we have a chance to close a gap at $4.42
As I mentioned before there is not much activity (if you look at VPVR (not on the current chart)) between $2.87-$4.42, so there is a chance that KAVL can shoot straight to $4.42 in one explosive move )
NOT FINANCIAL ADVICE , DO YOUR OWN DD.
P.S.Thanks for your time, please share your opinion .
Thanks !
Pros to enter :
1) For the past 8 days KAVL has been moving up showing higher highs and higher lows .
2) As you can see from the chart 20MA (white line) showing strong support
3) 20MA technically became a trendline and been tested 4 times (trend line must be tested 2 times to be formed and 3 times to be confirmed )
4) Volume for the past few days confirmed the price movements-strong volume.
5) Late news are positive as well.
6) Also KAVL is belongs to CONSUMER DEFENSIVE group of stocks and that group has have been in the top 3 performing groups for the past 6 moth
7) Also KAVL is located right below the big gap ranging from $2.87 to $4.42 (bottom of that gap got tested today) , "middle" of that gap is located on $3.80 level (look at 4 H chart OCT 21, 2021 move)
8) From the bottom of the gap all way to the top of the gap not much activity (check VPVR indicator on 1D)
9) Most of the market is moving down but KAVL is moving up.
10) Approximately around $2.07 area lays first line of support 50MA on 30 min time frame / 20MA on 1 hour time frame (both MAs are located at exactly the same spot)
Cons to enter :
1) Crazy, volatile market
2) Move to the 20MA was very volatile compare to other 3 spikes ( Reason to be concern?)
3) Bottom of the gap (DARK RED RECTANGLE above the market) got tested 4 times on 1H and got rejected.
4) RSI and other indicators I use in oversold zone, but on June 1st 2021 KAVL remained in RSI oversold zone for 17 days and continued to make move to the upside
same thing happened on JAN 11 2021 it stayed in oversold zone 'till February 2021 and continued moving higher and higher (will it be the same this time?)
Is that a PRO or CON ?
Action :
KAVL must bounce from the 20MA line (on 1H) ,move past the ORANGE DOTTED line (resistance) and establish support or shoot past it
First resistance line (before it will close the gap) will be at around $2.95 (prev high), then $3.80 (that is the level at which it got rejected to the downside on OCT 21 2021 (LOOK AT 4h CHART )
If after rejecting from $3.80 KAVL establish support at $ around $2.90-$3, the we have a chance to close a gap at $4.42
As I mentioned before there is not much activity (if you look at VPVR (not on the current chart)) between $2.87-$4.42, so there is a chance that KAVL can shoot straight to $4.42 in one explosive move )
NOT FINANCIAL ADVICE , DO YOUR OWN DD.
P.S.Thanks for your time, please share your opinion .
Thanks !
Comment:
INDICATORS FOR 1D
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INDICATORS FOR 4H.
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INDICATORS FOR 1H.
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IMAGE OF VPVR on 1D , As you can see there is not much going on in the gap area
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CON 5) The last candle on 1D chart is SHOOTING STAR
Comment:
Best thing to do is to wait for the confirmation bounce of 20MA
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CORRECTION RSI AND INDICATORS ARE IN OVERBOUGHT , NOT IN OVERSOLD !!!!
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1 MONTH ( LOG ) CHART
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1 WEEK (LOG) CHART
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1 D (LOG) CHART
Comment:
KAVL passed the previous resistance (doted orange line ) , went up to ~ $3.97 (bottom of the gap area ) and closed above the orange line at $2.76 . Lets see if KAVL enters the gap zone tomorrow .It might retest the orange doted line (~$2.50) which can become support .
Comment:
Comment:
As you can see that support around $2.50-$2.45 can be provided by 20MA(white line), orange doted line (previous resistance) and simple channel line (bottom of the trending channel). If KAVL move pass those 3 support lines and close below ,then probability of the price starting to fall down will be very high .
Comment:
Made mistake , KAVL went to $2.97 not to $3.97
Comment:
After testing $3.44 zone on 15th , KAVL crashed down to $2.31, but bounced up and closed at $2.68 .