31-May-2024 : Keeping it Simple with Price Action & Technical...

31-May-2024 : Keeping it Simple with Price Action & Technical Analysis

I was motivated to put a follow-up post after today's fantastic close. And not without reason, as we analyse the move objectively by way of a PnF chart today.

* The 45 degrees movement of a PnF makes it easy to analyse using what I have used below a Fib Fan.
I took the top point as the last high from Sep'21, extending that along the "failed" highs till today. We can see the price stopped making lower lows since around start of Mar'24, and is inching towards that middle line in the Orange fan area... the middle line has been stretched to form a resistance line.

* The Price has also inched close to the moving RED resistance line, and in the zoomed out close-up, we can see it also had made a high "X" close above that line. This was around 29-Apr-24.

* A month since then now, the stock has not made a double bottom, however, if we calculate the reversal price point using the 3-point reversal, it comes close to around 15.95..... VERY CLOSE TO TODAY'S CLOSE. !!

* So although the last column is of "O", close above 15.95 will take the price just a little bit more to reverse and form a new column of "X"... which will be also the 2nd "X" column close above the resistance line since what you see on the BOX-1.
* In Aug'23, it did close above as I have marked, but that didnt sustain and was infact a bull trap crashing down with a long column of "O".

All in all, I see strength to continue. Whenever it makes a close above around 16.2, that will be a multi-column breakout... and would be above all resistance lines.. On path to a new up-trend then.

As usual, this is my personal analysis and opinion and may be biased and can be wrong. DYOR, and don't forget the Stop-Loss.