Stadio may be overbought, lock profits and trail your stops.
JSE:SDO recently came under the light after releasing some good financial results. More often than not, when a stock becomes the "big talk" of retail investors, it is already too hot and they enter long positions only to HODL as it slips from its highs.
Looking at the recent price action of JSE:SDO, the instrument closed strongly bullish last week, however we can see price painting higher highs in a rising channel while the RSI is painting lower highs on the Weekly chart (long term price action). The 'Daily RSI' is also well into the overbought territory and this may be a signal to lock-in some profits as the instrument could be preparing for a "cool off".
Using the Fibonacci retracement tool over the high of Nov 2017 and the low of May 2020, price is expected to creep to the 61.8% retracement zone (around the R6.00 ~R6.18 levels) in a bearish reversal pattern on the lower time frames, where it may react bearishly to start its journey to R2.80 over the medium term. The share price is likely to find support at this level to rally higher and although very very unlikely (but not impossible), on the fail of this support then price may revisit the lows of May 2020.
Looking at the recent price action of JSE:SDO, the instrument closed strongly bullish last week, however we can see price painting higher highs in a rising channel while the RSI is painting lower highs on the Weekly chart (long term price action). The 'Daily RSI' is also well into the overbought territory and this may be a signal to lock-in some profits as the instrument could be preparing for a "cool off".
Using the Fibonacci retracement tool over the high of Nov 2017 and the low of May 2020, price is expected to creep to the 61.8% retracement zone (around the R6.00 ~R6.18 levels) in a bearish reversal pattern on the lower time frames, where it may react bearishly to start its journey to R2.80 over the medium term. The share price is likely to find support at this level to rally higher and although very very unlikely (but not impossible), on the fail of this support then price may revisit the lows of May 2020.