CIEN is a long term uptrend pattern. It continues to make higher highs and higher lows throughout & the price currently trades above the 200SMA, signaling a bullish trend may continue.
Based on it's history, the price reacts well with the EMA50, as that moving average is a known major support/resistance level. However, price action has "broken below" and "closed below" the EMA50 line during the current pullback.
Also, the RSI(14) history shows a common oversold level that bottoms out in the low 30's before recovering. RSI(14) was just at this level, overextended and consolidating in the low 30's during pullback. Now a series a bullish reversal candlesticks have formed following the oversold RSI levels, signaling a potential price reversal back into an uptrend.
A potential buy signal would be to go LONG when the price "breaks above" and "closes above" both the EMA10 and the EMA50 levels.
Stay LONG with the price action on the upside of the EMA10
Hold LONG position until RSI becomes overbought near the 70 level on the daily chart.
Stop loss= if price breaks back below and closes below the EMA50 &EMA10 @ -3%
Target Exit set at known previous resistance near 45.26 level @ +9%
3:1 Risk/reward optimal
Based on it's history, the price reacts well with the EMA50, as that moving average is a known major support/resistance level. However, price action has "broken below" and "closed below" the EMA50 line during the current pullback.
Also, the RSI(14) history shows a common oversold level that bottoms out in the low 30's before recovering. RSI(14) was just at this level, overextended and consolidating in the low 30's during pullback. Now a series a bullish reversal candlesticks have formed following the oversold RSI levels, signaling a potential price reversal back into an uptrend.
A potential buy signal would be to go LONG when the price "breaks above" and "closes above" both the EMA10 and the EMA50 levels.
Stay LONG with the price action on the upside of the EMA10
Hold LONG position until RSI becomes overbought near the 70 level on the daily chart.
Stop loss= if price breaks back below and closes below the EMA50 &EMA10 @ -3%
Target Exit set at known previous resistance near 45.26 level @ +9%
3:1 Risk/reward optimal
Commentaire:
9.18.19 ENTRY= GO LONG if price closes above EMA50 at end of day close