On the above monthly chart 7 years of price action resistance comes to an end following an oversold condition (orange column) with price action breakout. There now exists a number of reasons to be bullish on AYRO, they include:
1) Regular bullish divergence. Price action made lower lows as the oscillators made higher highs - very bullish.
2) Together with point (1) volume is accumulating. Someone knows something I don’t!
3) On the 6-month chart (below) there is a large ‘morning star’ candle with bullish engulfing candle confirmation. Very bullish on this scale making a trend reversal highly probable.
4) Lastly on the weekly chart (below) we have the 21-week (yellow) moving average crossing up the 50-week (Green) moving average. Been over 14 years since that happened.
Institutions such Blackrock, amongst others, make up for 3% of the shareholders of this stock.
A buy from $4.25 is excellent.
Weekly chart:
6-month chart:
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50% in 24 hours ?!
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Good long entry point as price action lands on the golden ratio.
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RSI returns to strong support (purple circles) on the 10-day chart - look left.
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On the 2-week chart a dragonfly DOJI candle prints as stochastic RSI crosses up 20 (purple circle)
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Just had an alarm go off on this one to inform me the downtrend in price action resistance is now broken. That's a positive.
Here I go again! Any updates on this post? I've placed a limit order at $4.25 and yet I'm seeing a support around the $4.50 to $4.80 area over the past month or so. Will patience pay off and reward a buy at $4.25 or are we now in different territory? Thank you in advance!
without_worries
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@sashakusak, Remember as said above 'a buy from XXX is excellent' is not the same as where we should expect to buy from. For myself I've been cost averaging in. Also, unlike Crypto, these ideas will take more time to play out, as you say, patience will pay off. Don't try to time the bottom, no one knows where that is least of all me. Much safer to cost average in (and out for that matter!).
The 1-month chart below produces a new candle in 12-days from now. We're all watching if previous resistance becomes support (yellow line) and prints a higher low on this monthly chart @ $4.25. I expect that to happen.
sashakusak
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@without_worries, Thank you for taking the time to write this message! I very much appreciate your reminder to cost average in. That's exactly what I'll do. It's so easy to get caught up in buying all at once thinking that we'll miss out if we don't! Patience always wins. Again, I appreciate your level headed, calm guidance.
without_worries
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@sashakusak, No worries. Emotions are a money killer. A strategy + control over emotion will put you among 10% of other traders out there.
sashakusak
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In this case, at what price level is the golden ratio? I still don’t fully understand how to create accurate Fibonacci levels. Getting there though! Thank you!
without_worries
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@sashakusak, There is various ratios to choose from. What I do is look left, has price action respected a particular ratio in the past? This is a good rule of thumb to work to. However do not assume price action will return to those levels, i.e. don't try to time the market. Instead set your buy/sell orders several percentage points away.
Do you remember why I choose the candles I did to draw my fib levels? Can you estimate the next entry level?
sashakusak
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@without_worries Thank you for the challenging questions! It would appear as if you chose those specific candles to draw your fib levels because the left candle is support and the right candle is resistance (within this specific time frame). With that said, I would say that the next entry level would be right around the 0.618 level. I might even say 0.5 level as to not be too greedy. Am I onto something here? I sincerely appreciate your guidance!
without_worries
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@sashakusak, That was probably not a fair question actually, because I did also make use of lower time frames, i.e. on the weekly.
Here is another stock I’ve been trading, recently sold at $8. I plan to get back in, but when?
I’ve chosen my candles for the fib levels, but why those candles? It is nothing to do with support and resistance but everything to do with the candles preceding and following the chosen candles. The rules are:
1) The 2 candles (minimum number) before and after the chosen lower fib level MUST have closed at a higher price.
2) As above the chosen higher candle must have 2 candles either side which has closed lower in price.
I’ve pointed out how I did this with arrows.
You can see on this stock the 0.618 was respected. Throughout price action history this level is typical for this stock, I don’t know why.
The more higher price closes / lower price closes for drawing your fib levels the stronger your analysis will be.