ASX:WZR has bounced back after announcement of Emerging leaders by Goldman Sachs. But is it the reason we see this bounce or the TA have a more clear explanation of what is going on? Let get into the chart and analyze.
WZR had bounced back from the 0.067 $ levels after massive sell-offs in March. From the TA point of view it is not surprising that the bounce back got rejected at 0.170 which coincided with the 50MA and the 0.382 fib moreover a gain of almost 170% from the March market abyss.
Bulls tried to take proft at 0.170 as it can be translated but massive volume of that day. This pusshed back the upward momentum to bring WSR down to the 0.110 levels which is almost 0.618 retracement and this is understandable plus 0.110 is historically a strong resistance.
With the above analysis i give recent bounce a high probability to be a start of the recovery and for this can be confirmed if the price remains above 50MA and probably pushes higher to go above 200MA.
For those who are trying to catch the train before it is gone, make sure you wait for the price to show a better consolidation above 0.17 which is a historic resistance once that is confirmed, target can be set according to your RR but we cant rule out the 0.3 levels.
I will keep you posted if anything changes.
DYOR,
Stay safe
WZR had bounced back from the 0.067 $ levels after massive sell-offs in March. From the TA point of view it is not surprising that the bounce back got rejected at 0.170 which coincided with the 50MA and the 0.382 fib moreover a gain of almost 170% from the March market abyss.
Bulls tried to take proft at 0.170 as it can be translated but massive volume of that day. This pusshed back the upward momentum to bring WSR down to the 0.110 levels which is almost 0.618 retracement and this is understandable plus 0.110 is historically a strong resistance.
With the above analysis i give recent bounce a high probability to be a start of the recovery and for this can be confirmed if the price remains above 50MA and probably pushes higher to go above 200MA.
For those who are trying to catch the train before it is gone, make sure you wait for the price to show a better consolidation above 0.17 which is a historic resistance once that is confirmed, target can be set according to your RR but we cant rule out the 0.3 levels.
I will keep you posted if anything changes.
DYOR,
Stay safe