Okay so when we have a look at the chart we can see that the price has been dropping for some time now.
At this moment we are in a zone that could be interesting for us to trade/add to our long term investment.
That zone is the block we see in yellow. This zone was resistance in the past and could be going to be support this time. We do have to wait and see what the price does when we are at this zone and see what the volume will do.
If we do see a break below that level we could be going to the other yellow block below the first one but that is something we need to see and wait for.
We also see that we have a descending wedge. This is not a good sign that because for some good movement to the top we need to break that wedge aswel. And we can see in the past that it already did have some trouble with breaking this zone.
We also see on the chart that we have a ascending wedge that was valid already. We have a break of the wedge and then we saw a retest of that wedge and then we went all the way down. This is the price and zone that we are in now.
So if we want to keep this stock we need to see a break of the ascending wedge and a break of the descending wedge and a respect of the yellow zone.
So we have 3 things that we need to see before we can see a big pump again.
We also do have to mention that this is just only a technical analysis and that with companies like this we also need to have a look for the fundamental data and we need to see what the price is going to do when we have earnings reports.
At this moment we are in a zone that could be interesting for us to trade/add to our long term investment.
That zone is the block we see in yellow. This zone was resistance in the past and could be going to be support this time. We do have to wait and see what the price does when we are at this zone and see what the volume will do.
If we do see a break below that level we could be going to the other yellow block below the first one but that is something we need to see and wait for.
We also see that we have a descending wedge. This is not a good sign that because for some good movement to the top we need to break that wedge aswel. And we can see in the past that it already did have some trouble with breaking this zone.
We also see on the chart that we have a ascending wedge that was valid already. We have a break of the wedge and then we saw a retest of that wedge and then we went all the way down. This is the price and zone that we are in now.
So if we want to keep this stock we need to see a break of the ascending wedge and a break of the descending wedge and a respect of the yellow zone.
So we have 3 things that we need to see before we can see a big pump again.
We also do have to mention that this is just only a technical analysis and that with companies like this we also need to have a look for the fundamental data and we need to see what the price is going to do when we have earnings reports.