Broke out of its one-year downtrend last September 3 accompanied by relatively high volume as also confirmed by the MACD line crossing over the zero line. 10-day and 20-day moving averages are still below the 200-day MA suggesting the need of further confirmation before taking position. However, 10-day MA has already crossed over the 20-day MA so it may warrant a confirmation of entry.
The ideal movement of the stock next week is to reach 7.50 before it starts to correct.
Once it makes a correction, expect the price to hold at 7. A bounce off that price level with volume would warrant a confirmation of entry and expect to meet immediate resistance at 7.70.
Major resistances in the short to medium term are 7.70, 8.10 and 8.60. There was also a resistance at 7 but it was taken out in yesterday's session.
The was also a small gap formed last Friday, pointing at 8.24 as a target.
However, if it drops further below 7, it would suggest that the breakout is a failure and it will most likely to resume its downtrend.
Entry: 6.65 - 7
1% Bounce from entry: 6.71 - 7.07
Break-even: 7.20
Psychological resistance: 7.70 - 8.10
Major resistance: 8.60
Cut loss: 6.40 - 6.76
Inverted 2-year chart:
Is it a buy or sell?
Caveat.
