HII Huffington - Bullish divergence on weekly and daily
HII Bullish divergence on weekly and daily
Weekly
On the weekly there is a ATR channel divergence, MACD-H and Elder Force Index divergence.
Stochastic RSI is coming from an maximum oversold condition and is curling up.
The previous last 4 candles each show down wicks, every week it closed much higher then the lows that week, a sign that lower prices were rejected and not much sellers were to be found in that area.
Daily
On the daily there is a bullish divergence and a first low. It was not a higher low, but still, after that candle the direction is upwards.
The EMA’s are crossing and Elder Force index shows strength in the up move.
Stochastic RSI is maximum overbought, but by the looks of it the trend has reversed and is strongly up, so it could stay overbought for some time.
There is no divergence on Elder Force index, which is a bit worry some. The down ticks were with much force.
I expect the target on the weekly will be between the +0.5 ATR level and the +1.5 ATR level on the weekly.
The stop loss level is 2 ATR levels away on the daily, and is equal to the bottom of the lows.
Entry: 2/3 @ 149,98
1/3 I will buy on a pullback on the daily.
Stop loss: 137,33
Projected targets:
Target 1: 174,75
Target 2: 184,88
R/R ratio: 1:2
R/R ratio: 1:2,5
Note:
As the trade develops, ATR levels change as well. It could be that I move up my targets, as in my trading style, the targets are dynamic.
I will exit in thirds as well. And move a stop loss when a higher low has been formed.
I will try to update the trades here as well, regarding changed targets and stop losses.
Weekly
On the weekly there is a ATR channel divergence, MACD-H and Elder Force Index divergence.
Stochastic RSI is coming from an maximum oversold condition and is curling up.
The previous last 4 candles each show down wicks, every week it closed much higher then the lows that week, a sign that lower prices were rejected and not much sellers were to be found in that area.
Daily
On the daily there is a bullish divergence and a first low. It was not a higher low, but still, after that candle the direction is upwards.
The EMA’s are crossing and Elder Force index shows strength in the up move.
Stochastic RSI is maximum overbought, but by the looks of it the trend has reversed and is strongly up, so it could stay overbought for some time.
There is no divergence on Elder Force index, which is a bit worry some. The down ticks were with much force.
I expect the target on the weekly will be between the +0.5 ATR level and the +1.5 ATR level on the weekly.
The stop loss level is 2 ATR levels away on the daily, and is equal to the bottom of the lows.
Entry: 2/3 @ 149,98
1/3 I will buy on a pullback on the daily.
Stop loss: 137,33
Projected targets:
Target 1: 174,75
Target 2: 184,88
R/R ratio: 1:2
R/R ratio: 1:2,5
Note:
As the trade develops, ATR levels change as well. It could be that I move up my targets, as in my trading style, the targets are dynamic.
I will exit in thirds as well. And move a stop loss when a higher low has been formed.
I will try to update the trades here as well, regarding changed targets and stop losses.
Trade closed: target reached:
I took profits on 177 on friday.
We need to be careful with the remaining target, due to the market that could turn amidsts a growing level of bearish indicators right now. I myself decided to exit completely and not wait out for the 2nd target. I think 177 was a nice exit.
We need to be careful with the remaining target, due to the market that could turn amidsts a growing level of bearish indicators right now. I myself decided to exit completely and not wait out for the 2nd target. I think 177 was a nice exit.