SMLISUZU: Capturing a 17% move in single day using ADX and rounding bottom.Jul 13, 2021
Momentum indicator like ADX can use along with simple price patterns to find explosive moves in stocks giving breakouts. We have shown here how we analyzed SMLISUZU stock using price action and indicators.
We published the following article on SMLISUZU pre market on 13th July in the Financial Waves. Equity report which our subscribers receive pre market every day.
SMLISUZU Daily chart as of 12th July 2021
SMLISUZU Daily chart as of 13th July 2021 (happened)
SMLISUZU has been moving higher recently and intact in strong uptrend. In the previous session it closed with a massive gain of 19.37%
On the daily chart, in the previous session the stock formed a strong bullish candle. We can see rounding bottom pattern has formed. A close above 554 which confirm breakout of rounding bottom pattern. We have shown ADX indicator which gives an indication if the stock is trending or in a trading range. The low readings of ADX indicates that the stock is in a range. The adx of this stock is 34.97 giving an indication of a trending market. The reading above 25 means strong directional strength.
In short, trend for this stock is positive. Use dips towards 570-580 as buying opportunity for a move towards 630-635 levels as long as 550 holds on the downside.
After we published the report, price opened at 606.25 and within the same day made a high near 696.85 with a gain of about 17%. The stock far exceeded our target of 635 within a day!
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