PPH has had a long weekly cycle, currently on week 48, the longest cycle since 2017. The share is seeking a weekly and yearly low price point. Compared to ther shares, it is quite a distance from the COVID lows, therefore those are more attractive to buyers. Looking at the chart we would invest as per the following guidelines:
1. We seek a swing low confirmation on the weekly, this is closing above R15.35 & use it as an entry point
2. Closing above the 10 week moving average currently at R16.14
3. Full confirmation of the weekly cycle turning bullish is price closing above the green resistance on a weekly basis
4. A yearly low confirmation comes above the purple trendline
From there we would expect price to re-enter the falling wedge, then overcome the 200 week moving average (so far these are converging presenting strong resistance). Failure to re-enter rising wedge might mean trend change, however we will update this idea as time progresses.
1. We seek a swing low confirmation on the weekly, this is closing above R15.35 & use it as an entry point
2. Closing above the 10 week moving average currently at R16.14
3. Full confirmation of the weekly cycle turning bullish is price closing above the green resistance on a weekly basis
4. A yearly low confirmation comes above the purple trendline
From there we would expect price to re-enter the falling wedge, then overcome the 200 week moving average (so far these are converging presenting strong resistance). Failure to re-enter rising wedge might mean trend change, however we will update this idea as time progresses.
Comment:
PPH is now seeking a daily cycle low below the support turned resistance of the wedge, I expect once the daily low is confirmed price will recover the wedge.