Today’s chart worth taking a look at will be AFTERPAY which is in a strong bull market respecting its and is currently in blue sky breakout mode. A return to its will post a good opportunity to long this instrument!
Points to consider,
- on all time frames
- Major support at .618 Fibonacci Level
- Blue Sky Breakout
- Stochastics projecting downwards
- respecting downwards trend
- EMA’s supporting price
- 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 ...
A retest of this is highly probable as the chart shows us that we have a potential divergence forming where price makes consecutive higher highs whilst the makes consecutive lower highs.
Major areas to keep an eye on will be the .618 Fibonacci Level and the green highlighted area on the , Price is more probable to test the 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 is diverging from price ( Divergence), common when we see buyers running out of steam, last time this happened, price returned to before another leg up. The Stochastics is currently projecting downwards momentum; we still have room for further downside if this 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 although slightly declining and an increase in bear 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 divergence comes to fruition. A good entry point will be on the , 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 divergence come to fruition and give us an opportunity to enter on this bull trend?
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