The Daily trend is in a Downtrend technically indicated by following:
• Price is currently trading BELOW the downtrend trend-line.
The downtrend is confirmed from the MAs. Bearish cross observed- MA 10 cross under MA20.
RSI:
• RSI is BELOW the equilibrium level- 50. Bearish Momentum.
• Bullish Divergence: New price bottoms are getting lower as a certain RSI bottom is rising indicating weakness in the downtrend.
Generally, monthly and weekly charts are also downwards.
Considering all the points above, we are in a “watching and waiting” situation because of the short-term bearish range seem to have narrowed down.
Bearish Scenario:
With a break (daily close) below the support-monthly trend-line, we will recommend SHORT POSITIONS for the no position holders on TEVA. Take profit at 40 -38.50(SMA200-monthly) and then at 36.00(S2) and stop loss should be a bit above the S1, thus the stop loss is at 43.50-44.00 area.
For Short-holders we will recommend to HOLD their short positions and adopt the same stop loss and take profit orders as mentioned above.
Bullish Scenario:
While sentiment remains unclear for long position, it is better to observe a confirmation of the bullish divergence. Therefore we are waiting for a reversal move – FAILURE SWING BOTTOM. Then long strategy will be with take profit at R1-R2 and R3 and stop loss a bit below the S1.
• Price is currently trading BELOW the downtrend trend-line.
The downtrend is confirmed from the MAs. Bearish cross observed- MA 10 cross under MA20.
RSI:
• RSI is BELOW the equilibrium level- 50. Bearish Momentum.
• Bullish Divergence: New price bottoms are getting lower as a certain RSI bottom is rising indicating weakness in the downtrend.
Generally, monthly and weekly charts are also downwards.
Considering all the points above, we are in a “watching and waiting” situation because of the short-term bearish range seem to have narrowed down.
Bearish Scenario:
With a break (daily close) below the support-monthly trend-line, we will recommend SHORT POSITIONS for the no position holders on TEVA. Take profit at 40 -38.50(SMA200-monthly) and then at 36.00(S2) and stop loss should be a bit above the S1, thus the stop loss is at 43.50-44.00 area.
For Short-holders we will recommend to HOLD their short positions and adopt the same stop loss and take profit orders as mentioned above.
Bullish Scenario:
While sentiment remains unclear for long position, it is better to observe a confirmation of the bullish divergence. Therefore we are waiting for a reversal move – FAILURE SWING BOTTOM. Then long strategy will be with take profit at R1-R2 and R3 and stop loss a bit below the S1.