VET has corrected considerably after its sharp rise. We are sitting below the 618 retracement line, although price is flirting with the upper resistance of the channel. VET has continued to show bullish divergence on RSI as price hits lower lows while RSI is making higher lows. Price is also currently flagged out but there is heavy resistance above with the channel and most of the higher TF MAs sitting above our price. It seems more likely that we will take one more drive down before going up. The 153/155 level looks appealing. It is the 768 fib of the previous surge, the 618 of the parallel channel, a horizontal support, and 1.618 extension of the most recent local uptick. A bounce from that spot would paint another bullish divergence and set us up to retest the upper resistance. If we break it, then I have T1 as the top end of the previous surge (268). We would also potentially creating a cup and handle pattern, so watch for the handle to begin to form in that price region.
If VET were to break out of the channel here, then I will buy on the break out with the same target.
If VET were to break out of the channel here, then I will buy on the break out with the same target.
Trade active:
VET moved almost perfectly with the anticipated movement. Not quite as much downside as I had hoped. Can take a manual entry here. If going that route, then it would be prudent to also keep buy orders hanging below as I think we may get another drive down.