If we take a look at this down trending stock we can see lower lows, but if we take a look at the RSI we can see that it is making higher lowers indicating a bullish divergence . The histogram on the MACD is getting smaller and smaller, so selling pressure is getting weaker and weaker. I would not enter right now but wait and see how it progresses as it flattens out, but overall in the long term it looks very bullish .
Comment:
It seems unlikely to break out of the wedge at this point for the following reasons.
1)On the Daily the MACD is about to crossover to the downside.
2) OBV is making lower lows if you zoom in
3) price action has been hugging the resistance line for awhile but has finally gotten a rejection of resistance with more conviction
Bullish signs
William R% indicates oversold
Neutral : RSI is neutral for now, but if it breaks the 50EMA (blue line) it will likely touch the support line and form a higher low. I believe this would be the time to buy.
While traditionally this is not playing the break outs strategy of a wedge I think this reduces risk ,especially if there is several bullish divergence and at worse if it fails to break out the trade becomes a decent swing trade that may yield a 15% gain if an entry of .230 and an exit of .265 occurs, which looks quite realistic at this point.
Based on it's previous pattern it has hugged the support line and slid abit before rejecting support so the same may happen therefore seeing prices such as .200 is not out of the question.
It seems unlikely to break out of the wedge at this point for the following reasons.
1)On the Daily the MACD is about to crossover to the downside.
2) OBV is making lower lows if you zoom in
3) price action has been hugging the resistance line for awhile but has finally gotten a rejection of resistance with more conviction
Bullish signs
William R% indicates oversold
Neutral : RSI is neutral for now, but if it breaks the 50EMA (blue line) it will likely touch the support line and form a higher low. I believe this would be the time to buy.
While traditionally this is not playing the break outs strategy of a wedge I think this reduces risk ,especially if there is several bullish divergence and at worse if it fails to break out the trade becomes a decent swing trade that may yield a 15% gain if an entry of .230 and an exit of .265 occurs, which looks quite realistic at this point.
Based on it's previous pattern it has hugged the support line and slid abit before rejecting support so the same may happen therefore seeing prices such as .200 is not out of the question.
Looks like it's forming a massive hanging wedge, seems like there was some rejection on the upside. If it forms another bullish divergence on the rsi and on the William R% indicator I will be tempted to enter a position. I doubt it will get any lower than 0.200. I'm hoping I can pick some up at 0.220