1. Bullish flag pattern formed on the daily chart. Watch for a channel breakout, with volume confirming the move. If valid, target resistance around $70. 2. Rounding top formed pattern formed on the daily chart.
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JMIA is headed toward a 38% retrace at $48, which is the average (mean) price of JMIA within the last 200 days, indicated by the dotted red line shown in the chart below. JMIA could retrace further, all the way to 61% ($35) and still be considered a bullish trend. Any price below the red dotted line represents a good entry, if you remain bullish on the stock.
@Tim_yang98, hi. I'm not sure how earnings might affect this asset. We'll know soon ;).
bigtradessean
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My thoughts exactly, nice chart! Today seems like a great entry.
Semi new to investing here, question for you. The options expiration would you predict is a good thing creating a jump of upward movement? Or too hard to tell? What is your take on that?
@bigtradessean, hi. Thanks. I select options based on directional movement of the stock. If the stock moves in the direction of the options (down for PUTs, up for CALLs), then the option premium should appreciate along side the stock. It’s the classic “BUY LOW, SELL HIGH” principle. I hope this helps ;)
sravanreddy001
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Nice analysis - Agree with Long & Flag.
Can you explain little about the rounding top being bullish factor? - I searched but, only came across bearish references to rounding top.
chiefwils0n
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@sravanreddy001, hi there. Here’s my source: thepatternsite.com/roundingtop.html . The rounding top pattern performs well for either upward or downward breakouts from a bullish trend. So, while it could break to the downside, I’m speculating that JMIA will break this pattern to the upside. I plotted the descending channel as a breakout detector. I hope this helps ;)