How to catch a BIG move using a simple Price pattern with IndicatorJul 18, 2022
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Trading breakouts can be tricky sometimes and it's best to use additional confirmation of other indicators to identify strong breakouts. Check out how we recently identified one such breakout in BLS
Stocks like BLS moved very well if one were to use simple patterns along with technical indicators. Here, we have applied the trend momentum indicator which is Moving Average Conversion Divergence (MACD) used to understand whether the movement in the price is strengthening or weakening
We published the following article on BLS pre-market on 13th July 2022 in "The Financial Waves Short Term Update" which our subscribers receive pre-market every day.
BLS Daily chart as on 13th July 2022 (Anticipated):
BLS Daily chart as on 18th July 2022 (Happened):
Wave Analysis as we published on 13th July 2022:
On the daily chart, in the previous session prices formed a Doji candle. A close above 219 will confirm breakout of rounding bottom pattern. MACD is above 0 and MACD line crossed above the MACD signal line which indicates that bullish momentum has increased in this stock and may continue in the coming session.
In short, trend for this stock is positive. A break above 215 can lift price higher towards 235-240 as long as 205 holds on the downside.
The stock moved as we expected. After publishing the report, the stock moved lower towards 207.40 levels. Within four trading sessions, the stock has made the high of 238.45 levels giving 10% move. In such a range bound market, the stock is holding well and trading near its all time high.
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