Chart analysis request by 2 followers in Australia. Here you go :
The first bottom on this chart is interesting. There is an average of 10 years separation acting as support. After the price tumbled to this level in Oct 97, it went up to a high of 42.
It comes down just as fast during the Financial crisis and revisited this bottom at 15.69 again. Then, it shoot up to a high of 37.60 in Mar 15 before it heads south again.
So, like many stocks that subject to the recent sell down in Mar 20, it too follows the same pattern, going below this support to a low of 13.19 before it rebound.
17.33 was the first resistance level that it cleared on its way up and now it is facing a 2nd resistance at 18.41.
Be patient here as there lies a possibility of price action going sideway for a while before we see a breakout of this new resistance at 18.41. Once it breaks out, identify a bullish signal on a lower time frame and go LONG.
The risk/reward ratio looks good with limited downside (13) and a higher potential upside (37 to 42)
The first bottom on this chart is interesting. There is an average of 10 years separation acting as support. After the price tumbled to this level in Oct 97, it went up to a high of 42.
It comes down just as fast during the Financial crisis and revisited this bottom at 15.69 again. Then, it shoot up to a high of 37.60 in Mar 15 before it heads south again.
So, like many stocks that subject to the recent sell down in Mar 20, it too follows the same pattern, going below this support to a low of 13.19 before it rebound.
17.33 was the first resistance level that it cleared on its way up and now it is facing a 2nd resistance at 18.41.
Be patient here as there lies a possibility of price action going sideway for a while before we see a breakout of this new resistance at 18.41. Once it breaks out, identify a bullish signal on a lower time frame and go LONG.
The risk/reward ratio looks good with limited downside (13) and a higher potential upside (37 to 42)
Comment:
Congrats to those who longed this stock !!! Praise the Lord!!