Greetings All,
JMIA closed above the 20MA, which indicates bullish sentiment. JMIA is also above the 200MA and recently retraced to the 61%, and bounced upward with a long strong candle in a V-shaped recovery - all bullish signs. JMIA has the potential to climb higher, but I’m concerned about the potential for the head and shoulders pattern (bearish), which could form over the next few days. I’ve included the bollinger bands to show that JMIA has the potential to retest $65 in the coming weeks, if not days. The MACD is also bullish, and may crossover in the coming days on the daily. There is also bullish divergence when you compare the price around the 61% retrace, and the MACD/RSI indicators. Therefore, I’m predominately bullish on the stock, but also prudent about its movement.
Strategy
I already own the 3/19 $60C, and may decide to purchase a few 4/16 $55/65 calls.
Happy Trading!
Disclaimer. My ideas are for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. There are risks associated with investing in securities. Investing in stocks, bonds, exchange traded funds, mutual funds, options and money market funds involve risk of loss. Loss of principal is possible. Exercise your own due diligence.
JMIA closed above the 20MA, which indicates bullish sentiment. JMIA is also above the 200MA and recently retraced to the 61%, and bounced upward with a long strong candle in a V-shaped recovery - all bullish signs. JMIA has the potential to climb higher, but I’m concerned about the potential for the head and shoulders pattern (bearish), which could form over the next few days. I’ve included the bollinger bands to show that JMIA has the potential to retest $65 in the coming weeks, if not days. The MACD is also bullish, and may crossover in the coming days on the daily. There is also bullish divergence when you compare the price around the 61% retrace, and the MACD/RSI indicators. Therefore, I’m predominately bullish on the stock, but also prudent about its movement.
Strategy
I already own the 3/19 $60C, and may decide to purchase a few 4/16 $55/65 calls.
Happy Trading!
Disclaimer. My ideas are for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. There are risks associated with investing in securities. Investing in stocks, bonds, exchange traded funds, mutual funds, options and money market funds involve risk of loss. Loss of principal is possible. Exercise your own due diligence.
