RCom is overbought and can remain overbought for longer, but its a good short candidate now for a target of 26-27.
Stop Loss 42.00.
Shorting in Futures is highly risky.
This chart is for educational purpose only.
What is Eos?
EOS stand for Edge of Space. It is basically a line drawn at the previous Swing High or Swing Low. If the price breaks and closes below the previous swing low making a new lower low, we say that the market wants to go down. However, if later the price rises and cloese above the EOS line, (which might be the case with RCom), we consider it a fake out ...
It is been observed on daily chart that the price action is moving up with higher high then previous green candle indicating a counter trend setup. It shall further move up to Fibs levels of 23.6% at 37.70.
It is been observed that the price action is ranging in a consolidation and moving sideways on hourly chart. Now, it is breaking out from the consolidation and now it shall move further down to the retracement level of 61.8% at 44.25.
Risk Reward: 1:4
Today, the price action took the prices to the previous support level of 47.45 where the buyers entered in the market and took the prices up again to close to day's open. It formed a bullish hammer that indicates rejection of lower prices and high buying pressure. To confirm this formation we shall see a green upside candlestick aiming to reach 53 levels which is ...
There is an opportunity to invest as the price action is moving up to Wave 3 after confirming and completing a regular flat corrective structure. Now we shall short corrections and high jumps in price movements.
Target 1: 56
After trending down for a while, today I observed a clean price action breakout from the trend line, it shows bullishness in price action and it shall continue it to the next resistance level marked as Target 1 and Target 2.
One can go long in this with stoploss at 49