Long $AO- 50% fib retracement following multi week rise from may low
- Gann's most profitable retracement
- Orderly pullback to previous resistance
- Long if support confirmed @ 80-83 region
81A trade ideas
AO World Plc - bullish divergenceOn the above weekly chart price action has corrected a massive 85% since the sell signal back in December 2020. Now everyone is calling for a recession and stock market collapse. We’ll see.
A number of reasons now exist to be bullish, including:
1) A buy signal has printed.
2) Regular bullish divergence. 9 oscillators are currently printing bullish divergence with price action.
3) RSI resistance breakout.
4) Price action finds support on past resistance.
5) Although another month is required to print the current candle as is shown on the 2-month chart below, it is evident price action is finding support on the past resistance channel.
Is it possible price action falls further? For sure.
is it probable? No.
Good luck!
Ww
Type: Investment
Risk: <=6% of portfolio
Duration: N/A
Return: 5x
2-month chart
AO WORLD DOWNTRENDHi,
I see that it hitting through support lines.
IF shortly, it should go down to the level @250 before the trend change.
AG
💡$AO. (LSE) 🚚 Good tailwinds for the online retailer💰+30%🏌️📖 AO is an electrical retailer operating in the UK and Germany and specialises in household appliances and electricals. Much like Ocado, its share price has benefited significantly from the CV19 pandemic, soaring by as much as 800%. 87% of ao.com reviews on TrustPilot are 5 stars and it is often praised for its great customer service. Sales in the UK rose 67% in the final quarter of 2020, reaching £457m. This was its best trading period ever, however they are also facing increasing costs to meet demand of the pandemic. Large white goods and appliances are very expensive to deliver end-to-end and also incur larger storage costs when compared to smaller electrical goods. It has a market cap of £1.6bn and its P/E is 62. There is lots of evidence to suggest consumer habits have changed significantly as a result of CV19, one of which being the willingness to buy large goods and appliances online. This could be a good tailwind for AO moving forward.
📈 AO is currently down 30% from its all time highs. Price has held inside of a bullish price channel from its March lows to its November highs. Yesterday saw a nice pin bar rejection of the lower price channel and also the completion of the 0.618 Fib retracement. On lower time frames, price is still bearish so you should watch for a break of this trend before considering going long. A break of the bearish trend could see a 30% move to the upside.
🔎This is not financial advice. Always do your own research and due diligence.
AO (1D) FTSE 100This may appreciate in value beyond the current horizon. I'm thinking Alibaba to the UK. That sort of setup.
