In this thread I want to share my technical analysis of stocks price charts as well as indexes, currencies, metals. I hope you will find something useful here for your profitable trading.
Few days ago I found an interesting stock which seems to be excellent for trading right now.
See the weekly chart below. Click the images to have a better resolution.
Few months ago the price reached the top at $44 and now found support at $40. The last 2 week's rollback seems to have only few chances to brake through resistance level of this steep channel. This is confirmed by small trading volume that declined during the upside rally.
Now lets look at the daily chart.
As you can see, there is a bearish engulfing pattern that happened near the upper trendline. This is a strong bearish argument together with the wave count. According to the Elliott Wave Principle, the fourth wave has just finished developing (possible zigzag) and now the last one is going to occur. Presumably, the price will fall to the level of $40.