CENSOF prepare to breakout? Will it succeed?
CENSOF is a company in technology sector which specializes in IT services and solutions. This counter had fulfilled the criteria of indicators that i'd been use in technical analysis that made me to published this idea. There are few indicators and reasons which supports my idea.
Firstly, this counter have a strong resistance and support line. As you can see in the chart, the price movements shows the patterns of Cup and Handle, Flag and Pole & Ascending Triangle which all the patterns are bullish continuation pattern. CENSOF is currently uptrending based on its MA50 & MA200 and it will be very likely to continue its bullish trend. The support line is strong as 3 occurrences of retracement at the support line follows slightly above MA50. There are 4 attempts for breakout on the current resistance at 0.520 and the fifth attempt will be very likely to succeed.
Secondly, the contracted volatility of price range occured starting 20 April 2021. This indicates a few things that happen in this counter. Retailers sell their possession for profit taking when the breakout attempt failed. The accumulation by the institutional traders and investors created spikes of volume at the retracement. The supply is diminished corresponding with the volatility contraction. Refer to the chart, the volume traded is decreasing due to the diminishing supply. As soon as breakout succeed due to the low supply and high demand,, the demand will explosively increasing as the retailers try to join the price rally.
Thirdly, the hidden bullish convergence of the RSI line and closed price. This convergence indicates the continuation of the bullish trend. RSI indicators purpose is to determine the momentum of the price action. Even though the momentum is decreasing, it's still in the neutral zone and the price keep to climb up. Accumulation of momentum is currently occupied as the price range continue tightening/consolidating before the breakout and bullish trend take over.
As conclusion, CENSOF had a great technical and financial analysis to be noticed by everyone for a chance to gain profit. The financial analysis is necessary to attract interest from traders/investors and to estimate its potential growth.
DISCLAIMER: This post serves as an educational analysis and is never meant/ intended to be a buy/sell call or recomendation, whatsoever.
Investors / traders must always do their own due deligence before making any investment decisions. The author of this post is not liable in any way for any decisions made by any individual.
Firstly, this counter have a strong resistance and support line. As you can see in the chart, the price movements shows the patterns of Cup and Handle, Flag and Pole & Ascending Triangle which all the patterns are bullish continuation pattern. CENSOF is currently uptrending based on its MA50 & MA200 and it will be very likely to continue its bullish trend. The support line is strong as 3 occurrences of retracement at the support line follows slightly above MA50. There are 4 attempts for breakout on the current resistance at 0.520 and the fifth attempt will be very likely to succeed.
Secondly, the contracted volatility of price range occured starting 20 April 2021. This indicates a few things that happen in this counter. Retailers sell their possession for profit taking when the breakout attempt failed. The accumulation by the institutional traders and investors created spikes of volume at the retracement. The supply is diminished corresponding with the volatility contraction. Refer to the chart, the volume traded is decreasing due to the diminishing supply. As soon as breakout succeed due to the low supply and high demand,, the demand will explosively increasing as the retailers try to join the price rally.
Thirdly, the hidden bullish convergence of the RSI line and closed price. This convergence indicates the continuation of the bullish trend. RSI indicators purpose is to determine the momentum of the price action. Even though the momentum is decreasing, it's still in the neutral zone and the price keep to climb up. Accumulation of momentum is currently occupied as the price range continue tightening/consolidating before the breakout and bullish trend take over.
As conclusion, CENSOF had a great technical and financial analysis to be noticed by everyone for a chance to gain profit. The financial analysis is necessary to attract interest from traders/investors and to estimate its potential growth.
DISCLAIMER: This post serves as an educational analysis and is never meant/ intended to be a buy/sell call or recomendation, whatsoever.
Investors / traders must always do their own due deligence before making any investment decisions. The author of this post is not liable in any way for any decisions made by any individual.
