Analysis:
Daily chart – After extensive downtrend, price starts to move sideways and creates a reverse head and shoulders pattern with a neckline at 7.61. The price has since broken the neckline of the Reverse H&S and has form a build up as the resistance/neckline area between 7.61-8.59. The beak of the neckline and buildup are very good indications the buyers are willing to buy are higher prices and stock might go into uptrend. The resistance area of the buildup, 8.58, has also been broken and this will be my entry signal. The immediate target area looks to be 13.00. I will analyze the 1hr chart for entry.
1hrchart – As we can see here, price is currently between 7.61-8.59. There was a false breakout last week with the price falling back into the range. The price bounced off support at 7.61 and broke thru resistance again. I will take this trade @ 9.10 with a stop loss just below support area of 8.59 & the 50ema. If I get stopped out of trade, I will look to buy back in at 7.80.
Entry: 9.10
Stop Loss: 8.31(-8.80%)
Target: 13.00(42.55%) Will also be trailing 50ema on 1hr chart
Oil is hot folks.
Daily chart – After extensive downtrend, price starts to move sideways and creates a reverse head and shoulders pattern with a neckline at 7.61. The price has since broken the neckline of the Reverse H&S and has form a build up as the resistance/neckline area between 7.61-8.59. The beak of the neckline and buildup are very good indications the buyers are willing to buy are higher prices and stock might go into uptrend. The resistance area of the buildup, 8.58, has also been broken and this will be my entry signal. The immediate target area looks to be 13.00. I will analyze the 1hr chart for entry.
1hrchart – As we can see here, price is currently between 7.61-8.59. There was a false breakout last week with the price falling back into the range. The price bounced off support at 7.61 and broke thru resistance again. I will take this trade @ 9.10 with a stop loss just below support area of 8.59 & the 50ema. If I get stopped out of trade, I will look to buy back in at 7.80.
Entry: 9.10
Stop Loss: 8.31(-8.80%)
Target: 13.00(42.55%) Will also be trailing 50ema on 1hr chart
Oil is hot folks.