Good morning traders, welcome to the last day of this 2020. Today, we bring you a stock that we consider to have great upside potential if certain conditions are met.
🔸Well, the first thing to detail is that we can see that from historical highs to the current moment, the price has a parable behavior, where a downtrend is generated, then the price finds a bottom, and the subsequent recovery begins.
🔸Theoretically, this movement leads us to see the price in the historical highs again in the short term.
What should we expect in the short term?
🔸At this moment, the price is facing a strong resistance zone. So first of all, we need this zone to be penetrated to the upside.
🔸Once this happens, two scenarios can occur. First, that the price generates a retest to the broken zone and then continues the upward movement, and the other option is that it is a direct movement towards highs.
🔸What we will necessarily wait for is that correction and retesting to the broken zone, to have a good risk-benefit ratio, and a safe place to position the stop loss.
Hasn't it just completed a retest of the broken resistance? at $51 and will proceed up to 60?
ThinkingAntsOk
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@noideaihave, Hi! It depends on which level you consider as Resistance. On our chart, we are looking for a bullish breakout of the $56 zone first, which has not happened yet. Instead, price couldn't break the zone, so we are waiting patiently for that event.