BTI Weekly in Potential Reversal Zone

BTI has recovered the falling wedge support, now above the 200 week moving average as well. The convergence of the 200WMA & wedge support represents a strong support that should guide price upwards & confirm a weekly low price by closing above the pink resistance. On a daily timeframe we see price seeking a half cycle correction. Worth noting on daily time frame the pink resistance coincides with the 200DMA. This resistance can send price into a daily cycle low, if that is set above price of R595.38 it presents a good buying opportunity with high confidence that 15 June is a weekly low.

Comment:

BTI is seeking a half cycle correction of a failed daily cycle, a small bounce before price trends downwards. The share is in week 41, if it wants to continue following the DXY strength & weakness then it is best to activate a stop loss or exit at relief out of half cycle correction. The longest weekly clocked 53 weeks, that is plausible given the bearish setup of the DXY.

Comment:

BTI likely had a daily cycle high and now moving into a cycle low, the current cycle is right translated giving credence to 18 July being an ICL.

Comment:

The current trajectory means that BTI is in daily cycle 2, we are within time for a half cycle correction but the lurking ex-Dividend date might push the share into an early cycle low. Price seems to be mimicking a Wykoff accumulation phase, however key is the low of 23 August, any lower than that means cycle has failed and will go down for longer.

Comment:

We must be open to BTI having a longer cylce of 66 days, so we are enroute to confirm a cycle low, a close above the 10MA is reasonable entry for a long position with R577.39 as a stop-loss.