After a long correction both time wise and price wise
-> stock showed first clean 5 wave rise
-> what followed was a perfect "abc" correction which touched 66% retracement levels
We cannot get a more cleaner structure in EW than this chart has provided for Wave 1 and Wave 2
The reversal came with strong 1 day candle that closed again above the falling channel top (this channel is all the way from Highs)
Looks to us as Wave 3 in minor degree has started.
What we would like to see is this minor degree structure develops in a 5 wave rise to confirm the long term trend reversal.
Lets see how this develops.
Disclosure - we took a testing position in the stock yesterday.
Disclaimer - this is not a buy recommendation, just sharing our views for the trade we took. Please consult your financial advisor before making any decision.
-> stock showed first clean 5 wave rise
-> what followed was a perfect "abc" correction which touched 66% retracement levels
We cannot get a more cleaner structure in EW than this chart has provided for Wave 1 and Wave 2
The reversal came with strong 1 day candle that closed again above the falling channel top (this channel is all the way from Highs)
Looks to us as Wave 3 in minor degree has started.
What we would like to see is this minor degree structure develops in a 5 wave rise to confirm the long term trend reversal.
Lets see how this develops.
Disclosure - we took a testing position in the stock yesterday.
Disclaimer - this is not a buy recommendation, just sharing our views for the trade we took. Please consult your financial advisor before making any decision.
Comment:
3109 closing price on 15th..20% return in a month not bad