Potential key reversal top detected for EHL

Feb 22

Level of interest: Prior support/resistance level in the past of $1.31 (07-Oct-2024) (key support/resistance area to observe).

Await signals for entry such as DMI/ADX and/or RSI swing to the bearish direction, and observe market reaction to support/resistance area at $1.31 to confirm.

Stop loss for the trade involving EHL (and indication that this trade is an absolute 'no-go') is any trade above the high of the signal day of 19th February (i.e.: any trade above $1.46).

Mar 1

Note

UPDATE (week ending 27-Feb): Attempted breach of the support line of Thursday was unconvincing and didn't satisfy the entry criteria above - feel free to set an alert and observe for any future attempts and observe market reaction at the $1.31 level at that stage.

Mar 7

Trade active

UPDATE (week ending 06-Mar): Trade activated on Friday, 6th March as per entry conditions displayed above.

Mar 14

Note

UPDATE (week ending 13-Mar): Gyrating price action throughout the week eventually resulted in a couple of tests of the 150 day moving average, with share price action settling at that level at the end of the week. Charts suggest to 'take a small piece' off the table and lower protective stops to an area slightly above the VWAP on the daily chart (i.e.: slightly above $1.33 to, say, $1.37 above the open of 3rd March). Trade now classified as 'further bearish potential'.

Mar 21

Note

UPDATE (week ending 20-Mar): Share price continued to decline according to the plan this week, however an interesting bullish engulfing candle formed on Friday as the share price respected the 200 day moving average. As such, charts are suggesting taking another 'small piece off the table' and consideration of enhancing profitable stops to a level slightly above the declining short-term 15 day exponential moving average (currently trading at $1.25 (say $1.26), in case of a sudden 'pop' in share price. Congratulations on a terrific trade!

Mar 28

Trade closed: stop reached

UPDATE (week ending 27-Mar): Profitable stop of $1.26 was slightly touched on 26th March which triggered an observation of market reaction, at the very least. No obvious large amount of buyers were present, although indicators such as on-balance volume (OBV) are tending to indicate on the daily chart that the trend to the downside may be weakening - not a bad area to consider covering short positions (at least initial investment) for a decent profit - well done on a terrific trade! Coverage ceased.