AzizKhanZamani
Short

Blue Sky Breakout | Bearish Divergence | Return to Trend line !

ASX:APT   AFTERPAY TOUCH GROUP LIMITED
Hello Traders,

Today’s chart worth taking a look at will be AFTERPAY which is in a strong bull market respecting its trend line and is currently in blue sky breakout mode. A return to its trend line will post a good opportunity to long this instrument!

Points to consider,
- Bullish trend on all time frames
- Major support at .618 Fibonacci Level
- Blue Sky Breakout
- Stochastics projecting downwards
- RSI respecting downwards trend
- EMA’s supporting price
- Strong volume
- VPVR showing high levels of transactions

APT’s market structure is very strong with consecutive higher highs in place, price continues to respect its well establish trend line ...

A retest of this trend line is highly probable as the chart shows us that we have a potential bearish divergence forming where price makes consecutive higher highs whilst the RSI makes consecutive lower highs.

Major areas to keep an eye on will be the .618 Fibonacci Level and the green highlighted area on the trend line , Price is more probable to test the trend line before a continuation. However if price fails and breaks down, then a retracement to the .618 Fibonacci will be highly probable before a continuation up.

The RSI is diverging from price ( Bearish Divergence), common when we see buyers running out of steam, last time this happened, price returned to trend line before another leg up. The Stochastics is currently projecting downwards momentum; we still have room for further downside if this bearish divergence was to play out.

EMA’s are currently supporting price, if buyers are able to hold this area then the divergence will be negated and a continuation of the breakout will be more probable. We have strong volume although slightly declining and an increase in bear volume is currently in fruition. The VPVR shows a consistent level of high transactions, this tells us that there are many buyers and sellers looking at AFT at current given time.

The probability of AFT correcting from current level is quite high if this bearish divergence comes to fruition. A good entry point will be on the trend line , however if it breaks, then the whole market structure will be negated… we then need to watch the .618 Fibonacci Level…

What are your thoughts on AFT? Will this bearish divergence come to fruition and give us an opportunity to enter on this bull trend?

Please leave a like and comment

And remember,
This was a very nice trade. Following.
+1 Reply
@RM13632221, Appreciate it! Thank you for the follow! :))
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Apologies With the TICKER - Its APT not AFT :)

And Remember,

The hard work in trading comes in the preparation. The actual process of trading, however, should be effortless - Jack Schwager
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