Hey all,
Since recovering from it's multi-month sell off, Vestas found strong support in early March at the 200-day MA, and has since been consolidating within a moving average "trap zone".
I have observed this pattern previously and on daily time frames, this sort of "coiling" will bring to a strong move up or down once the trap narrows, RSI seems to be developing a wedge pattern also, needing to chose a direction for the months to come.
VWS is currently trading below the 20, 50 and 100-day moving average, but has found support again at the 200-day MA recently.
I like this set up, although I would preferably be watching for a breakout above 275DKK for confirmation.
Downside risk is probably around the 200DKK mark.
Any thoughts?
Good luck!
(*This is not financial advice, for sake of discussion and illustrative purposes only*)
Since recovering from it's multi-month sell off, Vestas found strong support in early March at the 200-day MA, and has since been consolidating within a moving average "trap zone".
I have observed this pattern previously and on daily time frames, this sort of "coiling" will bring to a strong move up or down once the trap narrows, RSI seems to be developing a wedge pattern also, needing to chose a direction for the months to come.
VWS is currently trading below the 20, 50 and 100-day moving average, but has found support again at the 200-day MA recently.
I like this set up, although I would preferably be watching for a breakout above 275DKK for confirmation.
Downside risk is probably around the 200DKK mark.
Any thoughts?
Good luck!
(*This is not financial advice, for sake of discussion and illustrative purposes only*)