Ive been eyeing TDOC for some time, finally posting a chart on it talking about TA developments that may indicate a potential bottom area earlier this week (Check below for the link to that chart). I was also in the camp of TDOC going lower to the low $20 or high Teens ($18-19).
This weeks move of 30%, closing the weekly candle at 20% gains was a wonderful surprise.
Its important to NOTE, however that the move is NOT SET IN STONE yet -> For WEEKLY Timeframe
We are hitting a MAJOR confluence of RESISTANCES. Though we are ever so peaking our head out atm, next 1-2 weeks will show more evidence with confirmation.
FOr example: Next week CLOSE being a bullish single candle or next couple weeks printing a bullish candlestick pattern sequence.
The other side is that It could very well be a fake out/ SELL OFF and we do come back down to make a final lower low before we really become bullish. But in my opinion, the probability of a fake out maybe less.
We've moved above the 21 week EMA as well, we would need to confirm support above it in the coming weeks but being above 21 EMA indicates bullish activity.
NOTICE the Bollinger bands. Notice how it has narrowed, this could indicate volitility to pick up and we need to see price stay above median line and be near the upper band. We must Observe what happens in the coming weeks.
The Bollinger median line and 21 EMA are converging and can act as strong support zone. If we do come back down in price.
On the DAILY timeframe, we acted as SUPPORT on both the PURPLE major RESISTANCE line from all time highs and RESISTANCE line from July 2022. Just note however i would need more confirmation in the coming days by staying above as support, to be confident we stay at these levels. If we do, next weeks candle stays above and no fakeout occurs.
RSI is breaking out of the Horizontal resistance line that kept RSI range bound since OCT 2021. (indicated by black line)
This tells me, the BULLISH DIVERGENCE is at play. We would want RSI to continue UP, or follow the Green arrowed path drawn. We absolutely do NOT want the Red arrow. Which is a possibility but less probable in my opinion.
STOCH RSI, a momentum indicator shows that we have a bullish momentum cross, showing that there is still gas left in the tank for us to move. Expect it to go above the 80 level.
Conclusion + trade setups:
For stocks that are 80+% off there tops, averaging in always is a nice strategy.
I think under $30 is cheap for TDOC, especially with all these TA challenges being slowly conquered. There is no denying that it is highly probable we go up eventually, as we've reached critical historical support, and have been consolidating around here for awhile. Alot of indicators and other signs are leaning towards a bottom being formed or already formed.
*CHECK OUT A more detailed TDOC chart from earlier this week BELOW*
A swing trade idea could be taking positions using the Daily timeframe, putting stop loss below the PURPLE line. Making sure you manage your risk properly.
I would rely more on the WEEKLY timeframe and a confirmation that we've made it above the resistance, plus weekly candles are more macro and powerful. This would also be for holding/ longer term investing.
THANK YOU! Hope this update helped. If you like the content, please boost and follow. Please do comment with your opinions! Would love a discussion.
DISCLAIMER: I am not a Financial advisor. This is NOT financial advise. This is my opinion and for educational purposes.
This weeks move of 30%, closing the weekly candle at 20% gains was a wonderful surprise.
Its important to NOTE, however that the move is NOT SET IN STONE yet -> For WEEKLY Timeframe
We are hitting a MAJOR confluence of RESISTANCES. Though we are ever so peaking our head out atm, next 1-2 weeks will show more evidence with confirmation.
FOr example: Next week CLOSE being a bullish single candle or next couple weeks printing a bullish candlestick pattern sequence.
The other side is that It could very well be a fake out/ SELL OFF and we do come back down to make a final lower low before we really become bullish. But in my opinion, the probability of a fake out maybe less.
We've moved above the 21 week EMA as well, we would need to confirm support above it in the coming weeks but being above 21 EMA indicates bullish activity.
NOTICE the Bollinger bands. Notice how it has narrowed, this could indicate volitility to pick up and we need to see price stay above median line and be near the upper band. We must Observe what happens in the coming weeks.
The Bollinger median line and 21 EMA are converging and can act as strong support zone. If we do come back down in price.
On the DAILY timeframe, we acted as SUPPORT on both the PURPLE major RESISTANCE line from all time highs and RESISTANCE line from July 2022. Just note however i would need more confirmation in the coming days by staying above as support, to be confident we stay at these levels. If we do, next weeks candle stays above and no fakeout occurs.
RSI is breaking out of the Horizontal resistance line that kept RSI range bound since OCT 2021. (indicated by black line)
This tells me, the BULLISH DIVERGENCE is at play. We would want RSI to continue UP, or follow the Green arrowed path drawn. We absolutely do NOT want the Red arrow. Which is a possibility but less probable in my opinion.
STOCH RSI, a momentum indicator shows that we have a bullish momentum cross, showing that there is still gas left in the tank for us to move. Expect it to go above the 80 level.
Conclusion + trade setups:
For stocks that are 80+% off there tops, averaging in always is a nice strategy.
I think under $30 is cheap for TDOC, especially with all these TA challenges being slowly conquered. There is no denying that it is highly probable we go up eventually, as we've reached critical historical support, and have been consolidating around here for awhile. Alot of indicators and other signs are leaning towards a bottom being formed or already formed.
*CHECK OUT A more detailed TDOC chart from earlier this week BELOW*
A swing trade idea could be taking positions using the Daily timeframe, putting stop loss below the PURPLE line. Making sure you manage your risk properly.
I would rely more on the WEEKLY timeframe and a confirmation that we've made it above the resistance, plus weekly candles are more macro and powerful. This would also be for holding/ longer term investing.
THANK YOU! Hope this update helped. If you like the content, please boost and follow. Please do comment with your opinions! Would love a discussion.
DISCLAIMER: I am not a Financial advisor. This is NOT financial advise. This is my opinion and for educational purposes.
