Looking at the Daily chart we can see that the 200 EMA was rejected 4 times. Furthermore, it is confluent with an important resistance area around 51.50. There was a recent rejection on November 12 as well on the 26. one thing to notice was how large the volume was on November 26th ending with an important bull victory. The RSI has a bullish divergence if you look closely. Not sure how high it will be but it looks like a large bull flag from the weekly chart and will likely another critical point of 57.00. If bulls win that battle then potentially another large breakout will ensue. If not it may be a reversal.
Fortis entered a correction based off somewhat weak-ish earnings report as well as a bought deal financing. Typically, a bought deal financing results in a sharp drop as it dilutes shareholders - eventually though, it bounces back.
I see a touch off lower fib around 51.65 to fully close the gap then a wave higher.
Not oversold quite enough over the 5 daily period to buy right now IMO. I see a retrace like I said to a lower fib of 51.65 which would put buys around 51.70.
- zSplit
gNnairdA
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@zSplit, Thanks for the comment!
How are you drawing your fib retracement? I'm still quite new to trading in general and fib retracements, so I'm not quite following the 51.65.
Thanks
PaulDeep19131
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@gNnairdA, Pretty simple in this case. The yearly lower fib border is 51.65. There was a gap back since early August of this year (2019) gaps are filled when momentum of a stock or equities wanes for whatever the reason may-be - sometimes its days, weeks, months or years. Unlikely in this case that the stock has enough momentum to prevent the fall of that level. It's possible it goes lower than this but I would monitor the pivot from that level..
The latest earnings report wasn't great for Fortis and their latest bought deal (increase of shares) dilutes shareholders. Typically anytime there's a bought deal finance to increase shares for raising money for any stock or equity, its bearish, hence why this will likely drop to at-least the lower yearly fib border of 51.65.
Fortis entered a correction based off somewhat weak-ish earnings report as well as a bought deal financing. Typically, a bought deal financing results in a sharp drop as it dilutes shareholders - eventually though, it bounces back.
I see a touch off lower fib around 51.65 to fully close the gap then a wave higher.
Not oversold quite enough over the 5 daily period to buy right now IMO. I see a retrace like I said to a lower fib of 51.65 which would put buys around 51.70.
- zSplit