Update August 7, 2020
The downwards thrust and harmonics seems to point the reversal lower than $3.37. The support could be from any of the following
1. Historical support of $2.86
2. $2.28 (78.6 Fibonacci level co-incites with the price pattern completion AB=CD pattern and the trendline support-Green line) Refer to purple box
3. 5 waves to complete pattern C...
Stuck in multiyear channel between $6.04 high and $0.91 Low. The stock needs to break 6.04 for any definitive trend. On short term, there could be some upside to complete B towards $5.00 and drop to complete wave C or retest the low at $0.91. Pattern not clear at this moment
This ride is purely based on fundamentals, there was a strong sell off in Feb 2020 during the Pandemic crisis when everything else related to the Virus cure was rising. Therefore, this may no have too much upside, the max pushing for low risk trade is $12.53
If the correction is falling wedge, the support is at $3.37, previous peak (Feb 28, 2020) MACD crossed over indicating that this might be a falling wedge.
Or if its simple ABC correction and previous low holds as support at $4.00 and reversal around this price point would make a upwards run towards retesting $7.84
Possible Gartley Sell Pattern if price reverses @1.1369
- Initial target at 1.1156
- The current consolidation could be wave B and still room for wave C to the down. The over lapping wave pattern suggests we are still in corrective phase.
5 Mins chart showing divergence indicating the move upwards could be terminated @1.1369
If the price...
- Possible formation of Head and Shoulder
- Possible wedge formation
- MACD Bullish divergence (white Arrow)
- Previous peak resistance now support around 1.1150 also 0.382 Fib Retracement
- Channel support trend line
- Overall – good probability run towards possible 1.1500
** Caution, the falling trend line resistance might around 1.1300, need to clear that...