Broke out of its one-year downtrend last September 2 as confirmed by the crossing of the MACD line over the zero line which was also accompanied by exceptional volume. However, 10-day and 20-day moving averages are still below the 200-day MA suggesting the need of further confirmation before taking position.
The ideal movement of the stock next week is to reach 13 first before it starts to correct.
Price bouncing off 11 accompanied with volume would suggest a strong buy signal as it would indicate a strong support at the said level, with an immediate resistance at 13.
However, if it drops further below 11, it would suggest that the breakout is a failure and it will most likely to resume its downtrend.
Entry: 11
Psychological resistance: 13 - 14
Major resistance: 16 - 19.50
Caveat.
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