$JSECLH-City Lodge Hotels Ltd: 359 A Key Level To Watch
City Lodge released a pleasing set of interim results for the six months ended 31 December 2022 on the 24th of February 2023.
Although the share price did trade lower, there are reasons to be optimistic.
Taking a broader look at price action from an Elliott Wave perspective:
From 222 to 650 we have a leading diagonal for wave 1.
From 650 to 359 we have a zigzag ((abc)) with the ((c)) wave being an ending diagonal.
What is most significant at this current juncture is that from 546, the correction, though very deep, does not make a new low relative to 359.
Though not labelled, from 359 to 546 can be tentatively labelled wave (i) and from 546 to 362 wave (ii).
Another bullish signal is the reverse divergence between price and the MACD.
Between the Sep 22 and Mar 23 lows, the MACD made new lows whereas price did not.
Trade idea:
buy @ market
stop-loss @ 360
take-profit @ 546
For the previous coverage of City Lodge see link below.
Although the share price did trade lower, there are reasons to be optimistic.
Taking a broader look at price action from an Elliott Wave perspective:
From 222 to 650 we have a leading diagonal for wave 1.
From 650 to 359 we have a zigzag ((abc)) with the ((c)) wave being an ending diagonal.
What is most significant at this current juncture is that from 546, the correction, though very deep, does not make a new low relative to 359.
Though not labelled, from 359 to 546 can be tentatively labelled wave (i) and from 546 to 362 wave (ii).
Another bullish signal is the reverse divergence between price and the MACD.
Between the Sep 22 and Mar 23 lows, the MACD made new lows whereas price did not.
Trade idea:
buy @ market
stop-loss @ 360
take-profit @ 546
For the previous coverage of City Lodge see link below.
