PLS/AUD - Bounce off key level & trend breakAfter identifying an early break of bearish trend last week, I decided to give Pilbara Minerals Ltd (ASX:PLS) a week to see how it would perform. And what a strong week it was! Finishing #3 (+9.7%) out of the Top200 (imgur.com) was a strong statement from the bulls. PLS has been on a long, slow bleed since December '17 but it's now looking more attractive to astute swing traders and investors looking to add to their positions.
My reasoning:
Location: Reload zone
Structure: Double bottom off the 786
Divergence: Confirmed div in histogram, willy and RSI
Weekly gap above, between 0.655 - 0.685 (marked by green lines)
Trend: Break of bearish trend commencing July '18
Areas of concern:
VPVR gap below is nasty. Filling that void would result in ~53% drop from current prices.
While we have seen some strong moves from buyers, the weekly OBV is still under its 13EMA.
Unsure whether to classify the gap @ 0.215 as filled as we only had a partial candle close therein.
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