CHART -> SEQUENT SCIENTIFIC DAILY SETUP
As we can see on chart, Sequent Daily chart is giving three bearish trendline breakouts. MACD finally going positive after August. Huge volumes also in last 2 days.
These factors should act as a forward looking journey for SEQUENT SCIENTIFIC.
Disclaimer: This is for educational purpose only. This is not any...
It is still trading in this downward channel. I don't expect the trend to change until and unless this downward channel is broken on the upper side.
I request everyone to wait for the signal and not rush in this stock. Don't get trapped looking at the volume.
Sequent Scientific is in Animal Pharma API business, it is a very strong player in a relatively small industry. The stock is currently at its 61.8% retracement level. The stock should take support here, however, expect a time wise correction now in this counter. I remain Neutral but this can be a good accumulation zone if the levels are held.
Lets Zoom-in to our Weekly chart shared previously and see what's happening in Sequent Scientific.
As mentioned in our previous weekly view, a weekly close below 214 level may result in trend reversal (Downtrend) for this stock.
Now, what can we see on Daily chart?
1)Today's close took support around 214-215 zone.
2)Bullish RSI divergence can be seen. Where Price...
1) Weekly Trendline Support Broken.
2) Entered into Stage III - Consolidation/Minor correction.
3) Taking Support at 225.
4) If we apply Dow Theory:
(i) A close below previous swing low (HL/214) may result in change of Trend. Which is Stage IV - Downtrend. OR
(ii) Stage III may continue for a while before it enters next Stage II - Uptrend.