Would not be buying Redefine yet as it is currently trading at an especially important support line. We can see a clear Bearish Flag pattern. According to DailyFX.com a Bearish Flag is:
Identifying a bear flag can be easy once traders understand the components, and this is applicable to all financial markets. The pattern itself is divided into:
1. Traders will need to find the flagpole which will be identified as an initial decline. This decline can be steep or slowly sloping and will establish the basis for the trend.
2. The bear flag is identified as a period of consolidation after the completion of prices initial decline. During this period, prices may slowly channel upward and retrace a portion of the initial move. At this point traders will wait for price to break to lower lows in the direction of the trend.
We are awfully close to a bottom breakout, which in technical terms will be unbelievably bad for Redefine. I would recommend that traders wait for either a break below the support line (which will be confirmation not to go long for now) or a break above the 8-day Exponential Moving Average (EMA) at 277cps before consider taking a long position. Personally, I would wait for a break and close above the 21-day EMA (300cps) before going long.
Identifying a bear flag can be easy once traders understand the components, and this is applicable to all financial markets. The pattern itself is divided into:
1. Traders will need to find the flagpole which will be identified as an initial decline. This decline can be steep or slowly sloping and will establish the basis for the trend.
2. The bear flag is identified as a period of consolidation after the completion of prices initial decline. During this period, prices may slowly channel upward and retrace a portion of the initial move. At this point traders will wait for price to break to lower lows in the direction of the trend.
We are awfully close to a bottom breakout, which in technical terms will be unbelievably bad for Redefine. I would recommend that traders wait for either a break below the support line (which will be confirmation not to go long for now) or a break above the 8-day Exponential Moving Average (EMA) at 277cps before consider taking a long position. Personally, I would wait for a break and close above the 21-day EMA (300cps) before going long.