Hello fellow traders,
Today we are looking at the daily time frame for Electra Meccanica (SOLO) on the NASDAQ. As we cab see on the chart, prices rallied almost 500% to peak at around $6.00. Since then, as expected, there has been a massive correction back down to the $2.34 level. The chart has printed a bullish falling wedge pattern.
We now see that a double bottom has played out and prices have bounced off of several EMAs. We have prices trading above all EMAs, RSI above 50, and the MACD giving a bullish cross and moving up. These are all bullish. We can also see that there is some resistance here around $3.74 (0.382 Fib level), but this is expected at each Fib level, and I believe this is just further consolidation before the jump.
It is difficult to give an entry range right now, as we need to see where prices move from here first. As you can see, I have split my entries at $2.71, $3.00, and $3.29 (green lines), but I am looking to increase my position if prices continue moving upward.
Potential short-mid-term targets are at $4.58 (+24%) and $6.00 (+62%). A longer-term target at the 1.0 Fib level would be at $6.77 (+86%). If the high is broken, however, prices could move up to the 1.618 Fib level around $8.30 (+125%). Keep your eyes on this one, as it could be a huge opportunity for a long position.
Let me know your own thoughts and comments down below. Remember to like the post if you enjoyed and check out my profile for more stock and cryptocurrency trading ideas.
Price at writing: $3.62
Today we are looking at the daily time frame for Electra Meccanica (SOLO) on the NASDAQ. As we cab see on the chart, prices rallied almost 500% to peak at around $6.00. Since then, as expected, there has been a massive correction back down to the $2.34 level. The chart has printed a bullish falling wedge pattern.
We now see that a double bottom has played out and prices have bounced off of several EMAs. We have prices trading above all EMAs, RSI above 50, and the MACD giving a bullish cross and moving up. These are all bullish. We can also see that there is some resistance here around $3.74 (0.382 Fib level), but this is expected at each Fib level, and I believe this is just further consolidation before the jump.
It is difficult to give an entry range right now, as we need to see where prices move from here first. As you can see, I have split my entries at $2.71, $3.00, and $3.29 (green lines), but I am looking to increase my position if prices continue moving upward.
Potential short-mid-term targets are at $4.58 (+24%) and $6.00 (+62%). A longer-term target at the 1.0 Fib level would be at $6.77 (+86%). If the high is broken, however, prices could move up to the 1.618 Fib level around $8.30 (+125%). Keep your eyes on this one, as it could be a huge opportunity for a long position.
Let me know your own thoughts and comments down below. Remember to like the post if you enjoyed and check out my profile for more stock and cryptocurrency trading ideas.
Price at writing: $3.62
Comment:
Prices are now trading above $4.00, close to our first target!
Comment:
All targets hit!
