Buy LWSA3: Support Rejection, Trendline Break + MACD Divergence
Locaweb is presenting an interesting buy. Having gotten clobbered in the past months due to interest rates on the rise locally and globally, we now have signs that the bearish trend is on its last breaths, or has morphed into very early stages of an uptrend.
DOUBLE BOTTOM
A Double Bottom is likely being formed.
SUPPORT REJECTION
A few days ago, price closed a gap that was made close to the current most recent low. After closing this gap, which was served as a support itself(thin grey horizontal rectangle), price started climbing again.
TREND
We already have a higher high, but confirmation of a higher low will only take place when the last high is surpassed. For now we have a temporary higher low that was made just a few days go, and is a strong candidate to become this first higher low.
MACD
We have triple MACD Divergence which clearly shows waning bearish trend strength.
TRENDLINE
The bearish trendline was broken on this moves first leg up, which had a 50% plus price push upwards.
VOLUME
Said first leg up had record volume.
DOUBLE BOTTOM
A Double Bottom is likely being formed.
SUPPORT REJECTION
A few days ago, price closed a gap that was made close to the current most recent low. After closing this gap, which was served as a support itself(thin grey horizontal rectangle), price started climbing again.
TREND
We already have a higher high, but confirmation of a higher low will only take place when the last high is surpassed. For now we have a temporary higher low that was made just a few days go, and is a strong candidate to become this first higher low.
MACD
We have triple MACD Divergence which clearly shows waning bearish trend strength.
TRENDLINE
The bearish trendline was broken on this moves first leg up, which had a 50% plus price push upwards.
VOLUME
Said first leg up had record volume.
