Price action and chart pattern trading:
> A possible 3.C wave correction position - pullback entry at EMA20 zone - Target EMA200W / Fibo 0.5 retracement previous major 1 wave zone -25% downside - Stoploss @ wave 3.b position -10-12%
> Fundflow RSI tapping oversold zone but no bullish divergence signal
> BBD below 0 baseline potential lower price trending
> KDJ...
We are in an uptrend in Cycle wC. Price tested an all time high today @71.75 , followed by a retracement to 66.50.
- Expect a minor retracement of Primary w of Cycle wC.
- Expect the a severe thrust in the uptrend after Primary w correction.
EA might rally beyond our expectation. I made the trade setup a few day ago with many trading plan and various time frame analysis. The follow is the conclusion of my plan. I made the entry after it broke out the trend line. However, if you explore their financial information, you will not be doubt why it can fly further than my expected first TP.
Thesis
The sentiment still remain negative as a whole, but the energy sector should perform well in its Q1 with the WFH policy. The energy sector should be volatile with its earning coming up giving a good opportunity for following the rally.
Game Plan
The momentum is back with a positive trend as a support cushion.
Be careful, EA just reach the weekly resistance.
The stock is still in the downtrend.
Buying here would give you bad winning chance ( and risk reward also ) . So ,if you don’t have a better reason than me (maybe you have some fundamental reasons or insider news) , I do not recommend to buy it here.
