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For a moment the name of this stock reminds me of MI or Xiaomi. We have a power bank by Xiao Mi and they are pretty cheap and useful.
My frequent readers will know very well by now that I like to start things by looking at the big picture. Well, this is the weekly chart of the stock.
In 2018 this stock had a superb run up and now this stock is slowly going back up but still nowhere near the old highs.
So you should understand that this stock's story right now is "we are trying to regain glory" kind of stock.
After the stock made a higher low in the weekly chart and broke above the downtrend line, we can say that it is now in a weekly uptrend as well as a daily uptrend.
The stock still needs to overcome one more resistance which you can see from the chart above before it can have a smooth rise to its former highs.
With the big picture being dealt with let us move on to the daily chart.
Yes this stock is in a daily uptrend and therefore continuation patterns and dips are buyable.
Currently I do not see an entry pattern that I like. The resistance in the weekly chart kept the stock from rising.
Watch the green support area that I have highlighted. If this stock is any healthy it should not drop below this area.
I think for me, I would like it to drop to the green area and the rising 50 MA to find a buy the dip play. Preferably when the stock drops to the 50 MA there will also be daily bottoming tail of sorts and a 60 min break downtrend line for a perfect entry.
I do not like the structure of this stock's uptrend because of the resistance above so only the most promising chart pattern and set up will make me enter this stock if I play it.
So far no nice pattern and that my friends is a signal to put it on a watchlist and wait for a very potent pattern to form. Until then, this uptrending stock should just be part of a watchlist.
Jun 29, 20 08:04 AM
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