This is a pretty basic trade. After a very long downtrend the price has reached the bottom and a triple bottom has formed. The lower horizontal trend line indicates the immediate short term price target, however we can use this for a trigger in combination with a cross on the 200 day MA. Now normally the peak line of the triple bottom will be flat, as indicated by the dotted red line I have drawn in. However I'm going to do it different today. The lower trend line is anchored back on a congestion zone which lines up nicely with the tops of the previous highs. Now I don't think that we have hit our last peak yet. I think that will happen once the price action hits the 200 MA so that's when we can look to put the trade on. For a short term target I'm looking for about 20% which is set to a previous congestion zone. However, this could be the beginning of a new trend so it could be worth holding onto beyond that point.
Commentaire:
Looks like it wants to bounce around a little longer. Maybe we will get a round out instead of a Triple bottom. This get filed into the "keep an eye" basket.