$JSEBLU - Blue Label Telecoms: Recovery Play
BLUE had a strong sell-off in August 2022 from the peak of 750 zac.
The decline to 435 zac unfolded in a clear five wave impulse pattern.
What is uncertain is whether this sell-off is wave A, implying further downside, or wave C, implying 435 zac is a significant bottom.
What matters in the short-term is after a five wave sell-off, as a minimum, price should recover in three waves.
From the 435 zac low, price has made a sequence of higher highs and higher lows and price action is starting to look impulsive with strong volume.
The current wave outlook favours that the share is in the early stages of wave (iii).
There is also bullish MACD/price convergence between the lows of wave 3 and wave 5 and the MACD is gaining momentum, breaking above the zero-line.
Aggressive traders can use 463 zac as a stop-loss level but the bullish short-term outlook will be invalidated once price breaks below 435 zac.
I will keep a lookout for a trading update as BLU is expected to release Interim Results on Thursday, 23 Feb 2023.
The decline to 435 zac unfolded in a clear five wave impulse pattern.
What is uncertain is whether this sell-off is wave A, implying further downside, or wave C, implying 435 zac is a significant bottom.
What matters in the short-term is after a five wave sell-off, as a minimum, price should recover in three waves.
From the 435 zac low, price has made a sequence of higher highs and higher lows and price action is starting to look impulsive with strong volume.
The current wave outlook favours that the share is in the early stages of wave (iii).
There is also bullish MACD/price convergence between the lows of wave 3 and wave 5 and the MACD is gaining momentum, breaking above the zero-line.
Aggressive traders can use 463 zac as a stop-loss level but the bullish short-term outlook will be invalidated once price breaks below 435 zac.
I will keep a lookout for a trading update as BLU is expected to release Interim Results on Thursday, 23 Feb 2023.
