Over the last 3 years, Bombardier Relative Strength (14) has hit a peak of at least 70 **AFTER** hitting a low of 31 or lower. This chart shows roughly the relationship between share price & RSI as well as the "behavior" of these technical tools through the last 7 times this scenario has occurred.
Most would be looking to short here due to the breakdown and apparent short term consolidation happening under the critical price line.
However parabolic move down plus RSI extremely overextended tells me were in for a possible sharp incline. risky and volatile so relatively tight stops here.
Technicals - Bombardier is in a parallel channel. The upper limit and 180EMA are overlapping and form a strong resistance. Price could bounce down, or break above and get a good run-up. If it happens to go up, it could go back to recent highs around 5.40. I am just waiting for a trend confirmation to get into the trade.
Fundamentals - Bombardier made good...
Reasons to be Bullish : lagging span on Ichimoku Cloud is still touching price, price had sharp bounce off cloud, momentum from positive news, DMI lines crossing, Parabolic SAR just took long angle, and volume above average volume line. manage your risk accordingly
For those of you considering shorting Bombardier, I think there is still some upside left or atleast the time is not yet ripe to short the stock just yet. Granted, that based on historical performance (atleast the past 5 years) the stock has reached close to all time highs (since about 2012). Furthermore, the $5.00 mark seems to act as a key resistance level which...
Bombardier has had an excellent run since the stock reached all time lows of close to CAD$ 0.65 in 2016. Currently, the stock has move either way depending on key market conditions. BBD has quite the large debt (close to $9 Billion). The news of the CSeries partnership with Airbus, their upcoming Business Jet, excellent sales on the transportation sector and sale...
The 50 MA has been tested twice during this consolidation phase which is in the $3.15 area. The $3.70 area has acted as a resistance twice. I am looking into entering around the $3.20
support area with a bullish candle confirmation, bullish MACD, and near oversold RSI.