CFLT broke above a basing neckline on 2nd June and has now pulled back to retest this neckline for since the last few days. So far, this neckline is still proving to be a support and it could be a good time to stake into the new uptrend that is emerging (with initial stop loss below the neckline at $31.50).
Other technical factors that have lined up to increase its odds of success are:
1. Basing for the last 12 months (the long the basing period, the more sustainable the new trend)
2. now trading above it's 200 day moving average with a golden cross on 31st May
3. good increase in volume (ie., accumulation) seen in the weeks leading to the breakup on 2nd June
The next area of strong resistence (aka supply) could be around $43 - $45 (which is 22-25% upside from here). There is a reasonable chance that it could go beyond this level in the coming months, however, I will manage trade with trailing stop loss along the way up. Sometimes it is ok to be stopped out prematurely (high chance in a volatile market) but we can always re-establish a position once the consolidation is over and momentum returns.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
Other technical factors that have lined up to increase its odds of success are:
1. Basing for the last 12 months (the long the basing period, the more sustainable the new trend)
2. now trading above it's 200 day moving average with a golden cross on 31st May
3. good increase in volume (ie., accumulation) seen in the weeks leading to the breakup on 2nd June
The next area of strong resistence (aka supply) could be around $43 - $45 (which is 22-25% upside from here). There is a reasonable chance that it could go beyond this level in the coming months, however, I will manage trade with trailing stop loss along the way up. Sometimes it is ok to be stopped out prematurely (high chance in a volatile market) but we can always re-establish a position once the consolidation is over and momentum returns.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!