Daily Chart:
Here I will look at the overall picture of this stock and identify what stage the market is in. This will determine whether I will be Long, Short, or staying out of the trade.
The Picture is clear as day, we are currently in an Uptrend. After a lengthy Downtrend, the stock went into an Accumulation and broke out upwards on 12/21/2020. Price has since continued to move upwards in its Uptrend. It has also made several moves on its way up to show its growing strength. The price being above the 200 EMA confirms the Uptrend and the Golden Cross signaled the potential major rally. After the initial breakout and pullback, the price went on a very strong rally from 1.49 to 4.27 respecting the 10 EMA. The price ended up breaking down from the 10 EMA but bounced off the 50 EMA and rejected lower prices. This proved the Uptrend was still intact and the trend was still “healthy”. From there the Price made very strong move gaping the past 20 days and making 1-month highs. Following that move was a pullback and a price rejection of lower prices at the 10 EMA. This price rejection of the 10 EMA signals that the trend is once again very strong and we might be expecting a strong rally to higher prices.
The Price is in an uptrend and a very strong one. I will be looking for an entry in the lower time frame to go LONG on this trade
1 HR chart:
Here we can see the clear Support area at 4.15. Price has bounced off several times off this area but has also broken down below it and rejected the lower prices. The last rejection was a big one with the Buyers aggressively buying the lower prices and sending the price back above the 50ema and 4.15 Support area. Price has now pulled back to 4.15 area with back to back days of indecision candles at support. This is my que to enter.
Entry: 4.30
Stop: Trailing 10ema on daily chart
Here I will look at the overall picture of this stock and identify what stage the market is in. This will determine whether I will be Long, Short, or staying out of the trade.
The Picture is clear as day, we are currently in an Uptrend. After a lengthy Downtrend, the stock went into an Accumulation and broke out upwards on 12/21/2020. Price has since continued to move upwards in its Uptrend. It has also made several moves on its way up to show its growing strength. The price being above the 200 EMA confirms the Uptrend and the Golden Cross signaled the potential major rally. After the initial breakout and pullback, the price went on a very strong rally from 1.49 to 4.27 respecting the 10 EMA. The price ended up breaking down from the 10 EMA but bounced off the 50 EMA and rejected lower prices. This proved the Uptrend was still intact and the trend was still “healthy”. From there the Price made very strong move gaping the past 20 days and making 1-month highs. Following that move was a pullback and a price rejection of lower prices at the 10 EMA. This price rejection of the 10 EMA signals that the trend is once again very strong and we might be expecting a strong rally to higher prices.
The Price is in an uptrend and a very strong one. I will be looking for an entry in the lower time frame to go LONG on this trade
1 HR chart:
Here we can see the clear Support area at 4.15. Price has bounced off several times off this area but has also broken down below it and rejected the lower prices. The last rejection was a big one with the Buyers aggressively buying the lower prices and sending the price back above the 50ema and 4.15 Support area. Price has now pulled back to 4.15 area with back to back days of indecision candles at support. This is my que to enter.
Entry: 4.30
Stop: Trailing 10ema on daily chart