IBKR is a pretty solid stock quality wise with good earnings estimates expensively traded above 50 times of its earnings.
At the moment, we can see hidden bullish divergences fully developed on all 3 indicators (RSI, MACD and Stoch). And the fact that RSI dipped really low to 30 levels and started showing signs of picking up is bullish. Last time it did this in 04/2017, it started a freak new huge trend.
The draw back for bullish case is, price has been really stagnant in the area where there should be a strong reaction. This lack of confirmation for bullish run concerns me.
Wave count for IBKR at this point is also not very clear. Are we still in (5) of III (my main count) or III has been inplace at last high which will surely promise a much bigger drop, and the whole buildup we were talking above can very much be just a continuing flag.
So my take in this case is let us be patient and wait for a strong break out this buildup upper bounded at 71.20. If the break is strong and nice, we can take risk for some CALL.
At the moment, we can see hidden bullish divergences fully developed on all 3 indicators (RSI, MACD and Stoch). And the fact that RSI dipped really low to 30 levels and started showing signs of picking up is bullish. Last time it did this in 04/2017, it started a freak new huge trend.
The draw back for bullish case is, price has been really stagnant in the area where there should be a strong reaction. This lack of confirmation for bullish run concerns me.
Wave count for IBKR at this point is also not very clear. Are we still in (5) of III (my main count) or III has been inplace at last high which will surely promise a much bigger drop, and the whole buildup we were talking above can very much be just a continuing flag.
So my take in this case is let us be patient and wait for a strong break out this buildup upper bounded at 71.20. If the break is strong and nice, we can take risk for some CALL.
Order cancelled:
Trade never materialized. Bearish engulfing bar after the fake breakout was in fact a strong bearish signal.