On the above 3-day chart price action has corrected 90% since the sell signal (not shown) at $1.40 after a 500% run from the previous idea. Now is an excellent long moment. Why?
1) Strong buy signal (not shown)
2) Price action resistance breakout with confirmation of support.
3) Bullish hidden divergence. Often I talk about regular bullish divergence. Hidden divergence is the more powerful cousin. This occurs when oscillators prints a lower low as price action prints a higher high.
4) Price action on this chart has a very predictable target following the breakout of ..
Is it possible price action falls further? Sure. Is it probable? No.
Ww
Type: trade Risk: <=6% of portfolio Timeframe: Don’t know. Return: Will say elsewhere
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Past resistance confirms support.
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Comment
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Past resistance (albeit a short lived one) confirms support. Safe hold now until 1.40.