July 17, 2023

Technical Analysis

Three key takeaways:

  1. Bottom at R5/share
  2. Aggressive push above R6/share
  3. Structural break

The stock has seen a huge jump of +20% in the past 7 days alone and this came as a result of the stock testing a demand zone at R5/share. The sensitivity of the level gives us an idea that the stock might have just reached a yearly bottom, and it might not go below the level before testing new highs. The stock is currently trading above the R6 support and it looks firm at these levels. The recent rejection at the support is evidence of this. 


You (as a reader) may not be too familiar with market structures, but the stock has broken the possible head and shoulder structure that would cause it to drop further below R5/share.. This is a strong bullish sign. The momentum is likely to push the stock to R7/share (first target) and R10/share(2nd target),respectively. The foreseeable worst case scenario would be a retest at the R5 demand zone and this will be a drawback of ~20% from the current price. Otherwise, the stock is looking good!


Disclaimer: This is not financial advice.


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