'When in doubt, zoom out'. As ONCO is confusing me somewhat with mixed signals, I decided to take a look at the weekly chart only for now.
So we are inside a descending triangle. Which got broken to the downside during the 'covid crash', but the price recovered nicely back into it.
Long story short, we should wait until the price breaks up or down from this triangle before any real clarity on direction is there.
LONG argument:
- After a fake breakout of a pattern, often the actual breakout will be in the opposite direction.
- After the recovery from 77 to 145, a healthy retrace to almost (not quite) the 0.5 fib has been made and support subsequently was found.
- This 0.5 fib coincides with the bottom and support of the descending triangle.
- Fundamental analysis currently gives 240 as a target.
SHORT argument (short term):
- Lots of resistance overhead; 50MA, W cloud, horizontal resistance and downward trendline (blue).
- Still a gap at 119.70
-
2 possible strategies:
- Buy whenever price reaches support around 110-115, trusting the fundamentals.
- Wait for a breakout of the pattern and then look for an entry.
So we are inside a descending triangle. Which got broken to the downside during the 'covid crash', but the price recovered nicely back into it.
Long story short, we should wait until the price breaks up or down from this triangle before any real clarity on direction is there.
LONG argument:
- After a fake breakout of a pattern, often the actual breakout will be in the opposite direction.
- After the recovery from 77 to 145, a healthy retrace to almost (not quite) the 0.5 fib has been made and support subsequently was found.
- This 0.5 fib coincides with the bottom and support of the descending triangle.
- Fundamental analysis currently gives 240 as a target.
SHORT argument (short term):
- Lots of resistance overhead; 50MA, W cloud, horizontal resistance and downward trendline (blue).
- Still a gap at 119.70
-
2 possible strategies:
- Buy whenever price reaches support around 110-115, trusting the fundamentals.
- Wait for a breakout of the pattern and then look for an entry.
