BTI: Bouncing Off Wedge Support

runyamhere Updated   
Looking at USD, that is positively correlated to British American Tobacco, there is scope for price to move towards the wedge resistance. Since price is within timing for a weekly low we can expect such a move to close above the resistance line on a weekly basis. This idea should be read in conjunction with the USD trade idea here linked.
BTI went below the price of 31 March meaning it has not set a weekly low price yet. With price at support, we can look for a bounce off the support of the wedge, enter long on daily swing low confirmation, hold with expectation of breaking out of wedge & up.
BTI has closed below wedge support, looking at the weekly timeframe, it is now sitting on the 200 week moving average.
We can see price beginning to turn, a cycle low here would ensure we recover the 200 week moving average and wedge support, this would be quite bullish with short covering taking us above wedge resistance in quick time.
Trade closed manually


The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.