LOREAL possible buy

De_Banis Updated   
L'oreal, a French cosmetic giant is forming a possible buy position for investors. What am I looking at?
1. I am seeing forming of a Cup and Handle formation on a weekly time frame, which looks very nice.
2. Next important thing to consider, the price of the stock regained 50MA on weekly time frame, which is considered a nice bullish move and a chance to "get in" at a good price. Last time the price regained 50MA was on April 2020, and it has been rising ever since.
3. We have a small downtrend line which is about to be broken, price is sitting at 10EMA, priced around 404.4euros per share. I would like to see that level to be broken, before I enter with my first purchase.
4. The thing I liked, is that the price bounced hard from it's support level, sitting at 370.7 to 371.85 price level, and started making higher high's. This price movements are like a small cool off in trading, and market catching a break before the price makes new higher high.
5. My first entry point would be just above the current price, I would scroll down to H4 time frame, and wait for the down trendline to be broken before I enter.
6. Stop Loss for this first entry would be sitting 10-12 euros below the current price, price level 389. Why there? On the H4 time frame, just above this price level is the 50MA. If this level gets broken I will consider that market doesn't have the necessary strength to continue it's move up.
7. Second entry point, if everything goes as planned, would between 429 and 435 price levels, I would consider that Cup and Handle was fully formed once price breaks above those price levels.

As always, please do your due diligence before investing your hard earned cash, don't follow advice from a random guy on TradingView.
If anyone entered this position, I would advise you to move your stop loss level at some $413-415 price range. Protect your gains.
You can adjust Stop Loss level, of course, this is if you took the position. I would advise to put your Stop Loss at around $417-418 price level.


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