The price has declined 37% from ATH. Currently, we can observe movements typical from the accumulation / Distribution process. This type of movement is characterized by having clear limits. In this situation, we can observe the Support zone, and the descending trendline of the bearish movement (there are 2 of them)
Our view: We think that the most relevant level to observe bullish pressure on this Stock is the zone between 39 and 36. There we have an ascending trendline and a clear support zone where we observe bullish presence in the past.
If we want to develop long setups, we have two scenarios.
The first one is: Wait for the price to reach the mentioned zone (39 - 36) and then wait for the inner descending trendline breakout. Only there look for long setups by waiting for a clear corrective structure. This would be a high-quality scenario because the bounce comes from a specific level that we consider strong for buyers. After that, wait for a corrective structure and finally trade towards the First Target.
The second one is: From the current levels, we have a breakout of the bearish trendline, and we observe a clear corrective pattern that allows us to trade in the same way as the previous scenario. This situation is less premium than the other one because the price is not bouncing from a strong zone.
Please, take into consideration that this analysis is meant to understand situations inside the current sideways movement. Once this accumulation / Distribution process is finished, we will work on the middle and long-term targets for the whole structure's breakout.
Thanks for reading!
Our view: We think that the most relevant level to observe bullish pressure on this Stock is the zone between 39 and 36. There we have an ascending trendline and a clear support zone where we observe bullish presence in the past.
If we want to develop long setups, we have two scenarios.
The first one is: Wait for the price to reach the mentioned zone (39 - 36) and then wait for the inner descending trendline breakout. Only there look for long setups by waiting for a clear corrective structure. This would be a high-quality scenario because the bounce comes from a specific level that we consider strong for buyers. After that, wait for a corrective structure and finally trade towards the First Target.
The second one is: From the current levels, we have a breakout of the bearish trendline, and we observe a clear corrective pattern that allows us to trade in the same way as the previous scenario. This situation is less premium than the other one because the price is not bouncing from a strong zone.
Please, take into consideration that this analysis is meant to understand situations inside the current sideways movement. Once this accumulation / Distribution process is finished, we will work on the middle and long-term targets for the whole structure's breakout.
Thanks for reading!
