AsimMirzaTrader

NST - Seems that the medium term trend has changed.

Short
ASX:NST   NORTHERN STAR RESOURCES LTD
Bearish trend confirmation indications:

1. Formed a double top and broke the trendline.
2. It has made a swing low of $12.18 and consolidating near the Support Zone .
3. The bullish trend has been running since a long time, but the monthly candle for November
was a big red engulfing candle, and a bearish closing near the lows.
4. Seems that the Bulls have exhausted.

There might be two scenarios in the near future.

Scenario 1.

Price might go up and backtest the broken trendline and Resistance, and then fall.

Scenario 2.

Price might consolidate and will break the Support of $ 12.18 and close below.

In either case, I think that the Bulls have got weak at the current levels, and buying is Risky now. I am expecting price to fall below Support of $12.18 and would be looking to buy at Support 2 (at or close to $8.00 - $9.00) after confirmation of Bullish Price Action. The Support 2 area of $8.00 - $9.00 has been strong in the past as well, so it might be a good buying opportunity when it reaches the Support 2 Zone.

Please note these are my own notes, by no means trading advise. Please do your own research before entering into any trade.

Comment: Price in consolidation.
Comment: Price has come to support (Previous Swing Low). Buyers might buy at current price level of ~$12.00 and take it to ~$15.00 at Resistance, In either case, I think Sellers will step in to dump the stock. I think buying this stock at current levels is very Risky!!
Comment:
Comment: NST moved up, got rejected, then headed lower fast and is now at Support Level of $11.60. If the Support level of $11.60 does not hold and the trendline breaks, then NST may come down to the next Support Zone of $8.00 - $9.00 range.

Comments

Hi, thanks for doing the analysis. it seems like trendline is close to support 2 and going back up again (with lot of fluctuation). any further analysis will help to understand better. Thanks for sharing again.
Reply
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