#GLEN topped in the beginning of this year but since then the price rally lost its power though the company announced better results compared to the previous year.
Technically, the share builds a H&S formation, which has a neckline around 339. If this level is passed down then there may be further fall, which can be interpreted as a correction (ABC)...
Follow the comments on the chart! If the price goes up to the size of the stop loss point, put the stop loss on the entry point, Stop loss means that the closing price must be below the Stop line, the shadows are not acceptable. LSE:GLENEURONEXT:FTSE
I'm long $GLCNF/$GLEN here. I like the outlook for Cobalt, as the EV race intensifies. Supply of this metal is constrained, and as demand surges, prices will follow, intensely.
With some luck, I'm correctly calling the bottom of this pullback, which gives us a low risk to join this trend. I'm already positioned from lower levels in $VALE, and also in $BHP, and...
The daily chart shows a textbook topping pattern… here is the sequence –
Bearish RSI divergence
Breach of the rising trend line followed by sideways action
Bearish breakdown of sideways channel &
Now a falling channel
Looks like the share price is set to take out support at 292 and test the falling channel floor around 282 levels.
The bearish divergence as is shown by the falling channel on the RSI, coupled with the fact that 50-DMA has topped out suggests the stock is more likely to leave a lower top formation followed by a bearish break from the sideways channel floor seen at 308.30. Such a move would open up downside towards 277 levels (target as per the measured height method).