From a long-term perspective, the low during Apr 2020 covid19 marks a higher low and creates major support at 2.50-3.00 level. Since then, prices have rebounded more than 60% and eventually hitting the resistance of 4.60.
The price is now retracing lower and forming (seems like) a bullish flag on a smaller time frame.
We have a few things to take note of here.
1) The major resistance at 4.50-5.00 will not be broken anytime soon. Price will be met with supplies/selling at this zone. In the short/mid-term, this will be the target price.
2) Price is currently retracing, and we do not know how far it will retrace.
3) Anything below 2.50 is considered bearish, as we will be breaking the higher low.
As such, your best approach to taking this counter will be buying as close to the major support as possible, so you have room for profits. You can split your entries into two buy levels. One will be at 3.50, and the other will be at 3.00. This will ensure you will at least get one position in should the price decide to recover midway.
Needless to be said, you want to be out of this trade if it broke down below 2.500.
2021 FY earnings will be a key decider.
The price is now retracing lower and forming (seems like) a bullish flag on a smaller time frame.
We have a few things to take note of here.
1) The major resistance at 4.50-5.00 will not be broken anytime soon. Price will be met with supplies/selling at this zone. In the short/mid-term, this will be the target price.
2) Price is currently retracing, and we do not know how far it will retrace.
3) Anything below 2.50 is considered bearish, as we will be breaking the higher low.
As such, your best approach to taking this counter will be buying as close to the major support as possible, so you have room for profits. You can split your entries into two buy levels. One will be at 3.50, and the other will be at 3.00. This will ensure you will at least get one position in should the price decide to recover midway.
Needless to be said, you want to be out of this trade if it broke down below 2.500.
2021 FY earnings will be a key decider.