THE SPAR GROUP LTDUpdated $JSESPP SPAR Group Ltd - Could SPAR Catch A Bid At Support Zone
Since peaking in February 2018 at 22700 zac, SPAR has retraced 40% but is hitting a critical support zone.
From an Elliott Wave perspective, the decline from the all-time high to the March 2020 covid-19 sell-off low at 14225 zac unfolded as an ABC zigzag for wave (A).
Wave (B) made a deep 88.6% Fibonacci retracement to peak at 21347 zac.
The current sell-off from 21347 zac seems to be unfolding in a textbook five wave impulse with wave 3 subdividing in a clear five waves, wave 4 does not overlap with wave 1 and wave 5 seems mature.
At this stage there is no price action evidence that a turn-around is imminent but price is trading at historical support/resistance in the 13484 to 10730 zac zone.
To create confluence, the 12872 to 10872 zac zone represents the price area where wave (C) is a 1.00 to 1.236 Fibonacci multiple of wave (A), a common ration for a (A)(B)(C) flat pattern.
Momentum is still clearly to the downside but this is a chart worth watching in the short-medium term.
From an Elliott Wave perspective, the decline from the all-time high to the March 2020 covid-19 sell-off low at 14225 zac unfolded as an ABC zigzag for wave (A).
Wave (B) made a deep 88.6% Fibonacci retracement to peak at 21347 zac.
The current sell-off from 21347 zac seems to be unfolding in a textbook five wave impulse with wave 3 subdividing in a clear five waves, wave 4 does not overlap with wave 1 and wave 5 seems mature.
At this stage there is no price action evidence that a turn-around is imminent but price is trading at historical support/resistance in the 13484 to 10730 zac zone.
To create confluence, the 12872 to 10872 zac zone represents the price area where wave (C) is a 1.00 to 1.236 Fibonacci multiple of wave (A), a common ration for a (A)(B)(C) flat pattern.
Momentum is still clearly to the downside but this is a chart worth watching in the short-medium term.
Trade active
JSESPP seems to have caught a good big at the support zone.The 5 wave sequence for wave (C) looks complete and a bottom could be in place.
The current rally up looks impulsive and i will be on the lookout for 5 waves to increase my confidence.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.