AsimMirzaTrader

S32 - Next Pullback may give a Buying Opportunity

Short
ASX:S32   SOUTH32 LIMITED
Bullish Confirmation Indications

Recent price action has confirmed a reversal by pumping upwards and forming a higher high.

1. Price has formed a higher high
2. It has formed a Golden Cross
3. Recent consolidation at Resistance indicates that the stock price is facing a hard time continuing up
4. The price is at 78.6% Fib Retracement level of $2.45 and @2.60 range, which is also a Resistance Zone
5. OBV suggesting Bullish Volume may be fading
6. I will be confident to buy in the $2.20 - $2.35 region (Buy Zone).


Please note these are my own notes, by no means trading advice. Please do your own research before entering into any trade.
Comment:
Comment: Price failed to retrace lower and instead continued higher but is now hit the upper end of the channel, which makes me think that it should be ready for a pull back. The green box is the Fib retracement level of 50% - 61.8% of the rally it started from the 2nd of November. I believe that it has higher chances to retrace lower instead of continuing higher and pull back to the Buy Zone range of $2.30 - $2.50, where I would be interested to buy.