After a week of weakness the price has reached a strong resistance cluster. The chart has also printed several consecutive doji candles after a strong down move which signals indecision and possibly a shift from bear control to bull control. The 50/200 moving averages are both still bullish with the CCI signaling bearish exhaustion. This seems like an appropriate level to begin scaling in for a long position. We will either get a dead cat bounce and continuation of a new bear trend or this was just a pullback before a continuation past the previous high. There's no way to know for certain which is why we will take profits at each target level as a hedge for a possible fake out.
Entry Level: $ .53
Target 1: $ .60
Target 2: $ .70
Tagret 3: $ .90
Suggested Stop Loss: $. 50
Entry Level: $ .53
Target 1: $ .60
Target 2: $ .70
Tagret 3: $ .90
Suggested Stop Loss: $. 50
Trade active:
Nothing has changed. If the support is not breached with volume to support it, then we will see a strong reversal on RLC.
Comment:
Stop-loss was triggered on this trade.