$2-$5 with VUZI..breakout, reversal, gap fill, new uptrend
So I started this trade profile two days ago and made starting position trades this morning @$2.10, $2.11 and $2.12. A lot to like about the chart and oscillators at the $2.12 level. What's not to like:
1) Breakout is just now moving out of two downtrends, one from 17 months ago from $8.45 level and another over six months old. This breakout above downtrend lines is second attempt since failed breakout in late June (six months ago) at $4.97 price level.
2) RSI launch pad zones have had readings below 40 at 32 on both August and November up ward thrust in price. Both of these moves hit resistance at $2.57 while still under the downtrend line(s) of six and/or 17 months. The current RSI launch pad zone is using a reading of 40, higher than the previous two, and no longer under a downtrend...so this time is looking different in more ways than one.
3) Price has experienced a downtrend from $8.45 to $1.77 from July,2018 - Jun, 2019.
Followed be a triple bottom on June,2019, Aug9,2019 and Aug28,2019. Since August, 2019 the resistance at $2.57 and support points near $1.89 and $1.96 have stopped the previous downtrend and formed a sideways channel that may be ready to begin a new uptrend. Recently with move off of the $1.96 support and six month downtrend line the next breakout point from 17 month downtrend is at $2.10 which was hit yesterday and today.
This breakout setup has multiple targets for next 1-12 months:
FIRST Breakout from $2.10 and $1.96 levels both target previous resistance of $2.57
SECOND target is the high point from first RSI launch pad in price back in June at $2.97
THIRD target is the bottom of gap in price at $3.62 formed six month ago on July 1st, 2019
FOURTH target from this set up is the high in price from first breakout attempt in June at $4.97
With buys above the downtrend lines near $2.00 and $2.10 I started this trade a day late at $2.10
Plan to buy in on daily dips during anticipated uptrend formation toward first two targets. With time to get in before $2.57 resistance I see multiple 10-30 percent trades towards $5.00 price with this one.
That is the idea for my VUZI trade set up profile...happy hunting in 2020.
Trade to win...Trend is your friend....Manage the risk....will be your Success!
Dr. RAV
1) Breakout is just now moving out of two downtrends, one from 17 months ago from $8.45 level and another over six months old. This breakout above downtrend lines is second attempt since failed breakout in late June (six months ago) at $4.97 price level.
2) RSI launch pad zones have had readings below 40 at 32 on both August and November up ward thrust in price. Both of these moves hit resistance at $2.57 while still under the downtrend line(s) of six and/or 17 months. The current RSI launch pad zone is using a reading of 40, higher than the previous two, and no longer under a downtrend...so this time is looking different in more ways than one.
3) Price has experienced a downtrend from $8.45 to $1.77 from July,2018 - Jun, 2019.
Followed be a triple bottom on June,2019, Aug9,2019 and Aug28,2019. Since August, 2019 the resistance at $2.57 and support points near $1.89 and $1.96 have stopped the previous downtrend and formed a sideways channel that may be ready to begin a new uptrend. Recently with move off of the $1.96 support and six month downtrend line the next breakout point from 17 month downtrend is at $2.10 which was hit yesterday and today.
This breakout setup has multiple targets for next 1-12 months:
FIRST Breakout from $2.10 and $1.96 levels both target previous resistance of $2.57
SECOND target is the high point from first RSI launch pad in price back in June at $2.97
THIRD target is the bottom of gap in price at $3.62 formed six month ago on July 1st, 2019
FOURTH target from this set up is the high in price from first breakout attempt in June at $4.97
With buys above the downtrend lines near $2.00 and $2.10 I started this trade a day late at $2.10
Plan to buy in on daily dips during anticipated uptrend formation toward first two targets. With time to get in before $2.57 resistance I see multiple 10-30 percent trades towards $5.00 price with this one.
That is the idea for my VUZI trade set up profile...happy hunting in 2020.
Trade to win...Trend is your friend....Manage the risk....will be your Success!
Dr. RAV
Comment:
VUZI's upthrust line was short lived and price has returned into support area buy zone just above SL amount. Price is now back under downtrend line and inside price channel used by initial breakout of last week. Dejevu. Increase in volume with falling prices may not be welcome yet oscillators are now near a reset zone if another attempt to breakout is going to happen. Will see if SL is activated next week or not.