I am basing my strategy on a bullish channel set up from the two tops and two bottoms starting from the 2018 rally. Both perfectly closing on the boundary.
Now I see a pretty evident Bearish divergence from RSI and a double top on the momentum chart. I also believe that rally that started in Sept 2019 and ended in February 2020, brought the stock to an overvalued price, since major changes and news in the company had not been made. You can also see the volumes during this rally were not so high to explain such a movement. Plus, the fear for a China-Usa trade war comeback and unknown ways of how the world is being affected by Covid, may halt investors to put money in at this time.
Therefore, I probably see a correction in the next few months towards the bottom of the channel with a long-term bullish view, which I'd switch if the bottom line was crossed over.
Rocco.
Now I see a pretty evident Bearish divergence from RSI and a double top on the momentum chart. I also believe that rally that started in Sept 2019 and ended in February 2020, brought the stock to an overvalued price, since major changes and news in the company had not been made. You can also see the volumes during this rally were not so high to explain such a movement. Plus, the fear for a China-Usa trade war comeback and unknown ways of how the world is being affected by Covid, may halt investors to put money in at this time.
Therefore, I probably see a correction in the next few months towards the bottom of the channel with a long-term bullish view, which I'd switch if the bottom line was crossed over.
Rocco.