Current Market Situation (3/10)
BNS is clearly in a large downtrend, so opening a large position is only possible in the short term. That’s why we should also take into consideration the possibility of breaking downward and joining the crash. Anyway, as we will see later, the fundamentals to try the long position are good.
Patterns found by AI (8/10)
After multiple bottoms in the 45-47$ area, two lovely patterns have arisen according to AI historical models.
1. A continuation triangle that could move the price at least to 53$. We have recently seen the price break the trendline, so an upward movement is likely.
2. A double bottom that would be valid if the price breaks 50.9$. If that happens, we have a very high probability of seeing the expected 53$. Losing 47.9$ is a signal that the patterns have failed and the downtrend is returning faster than expected.
AI predictive model confirmation (6/10)
When we run the AI models, we see that historically this kind of market movement is not very bullish; it’s more common to see some downside before we see bigger prices. So take care with pullbacks and be ready to use your tight stop loss. There is no strong historical evidence for rallies in this kind of pattern.
Risk Reward (7/10)
The Risk reward is quite good as we can earn 3 times the risk. Furthermore, if the price breaks the double bottom upwards, the probabilities of reaching our 7% target of benefits increase a lot.
Conclusion (6/10)
This is a good trade, but there are multiple issues that need to be addressed. The trade is against the long-term trend and AI models are predicting lateral movements. On the bright side, we have clear patterns, a good chance to arrive at the target price of 53$, and also a tight stop loss that helps us to handle a good risk/reward ratio. Furthermore, if the price breaks down, we can do a counter-trade to profit from the crash.
BNS is clearly in a large downtrend, so opening a large position is only possible in the short term. That’s why we should also take into consideration the possibility of breaking downward and joining the crash. Anyway, as we will see later, the fundamentals to try the long position are good.
Patterns found by AI (8/10)
After multiple bottoms in the 45-47$ area, two lovely patterns have arisen according to AI historical models.
1. A continuation triangle that could move the price at least to 53$. We have recently seen the price break the trendline, so an upward movement is likely.
2. A double bottom that would be valid if the price breaks 50.9$. If that happens, we have a very high probability of seeing the expected 53$. Losing 47.9$ is a signal that the patterns have failed and the downtrend is returning faster than expected.
AI predictive model confirmation (6/10)
When we run the AI models, we see that historically this kind of market movement is not very bullish; it’s more common to see some downside before we see bigger prices. So take care with pullbacks and be ready to use your tight stop loss. There is no strong historical evidence for rallies in this kind of pattern.
Risk Reward (7/10)
The Risk reward is quite good as we can earn 3 times the risk. Furthermore, if the price breaks the double bottom upwards, the probabilities of reaching our 7% target of benefits increase a lot.
Conclusion (6/10)
This is a good trade, but there are multiple issues that need to be addressed. The trade is against the long-term trend and AI models are predicting lateral movements. On the bright side, we have clear patterns, a good chance to arrive at the target price of 53$, and also a tight stop loss that helps us to handle a good risk/reward ratio. Furthermore, if the price breaks down, we can do a counter-trade to profit from the crash.