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After a big gap down, Astino is finally trying to start a new uptrend. There are still lots of resistance overhead. With a rounded top kind of pattern in the daily chart, I believe it will take quite a lot of effort to slowly overcome all these.
The chart above is the daily stock chart of Astino.
As you can see, the stock made a massive huge rounded top from May to October 2017. Some may even see it as a head and shoulders top.
The big gap down ignited a downward move in the stock right up to the end of November 2017. From there, the stock bounced back up as it hit the long term weekly support.
As it has made a higher low, we can consider Astino to have already started a new uptrend.
Since there are lots of resistance overhead (which is another word for supply), I believe the move up in Astino if the uptrend continues will be slow and grinding higher. Meaning, it will probably not be smooth. It will go up a bit then drop, go up a bit and then drop.
All these can be frustrating for investors. But traders would no doubt be able to buy the dips and sell the rallies.
I would like to bring your attention to the uptrend line that I have drawn. This trendline will be crucial. If Astino is able to stay above this trendline, then the uptrend will resume.
On the other hand, if it drops below it, then we might encounter a double bottom in the weekly chart situation like I have drawn below.
The above is the weekly stock chart of Astino.
You can see why Astino bounced up in late November 2017. The stock dropped to long term support.
If Astino cannot stay above the daily uptrendline I have drawn, we could anticipate a weekly double bottom. The reason is there is long term support as well as a gap up type of support. The gap up happened in early 2017.
The double bottom area might be where the rising weekly 200 MA will meet it as well. If a double bottom forms, it would be great to see it trade back above the downtrend line I have drawn on the weekly chart. This will be a good double bottom to trade.
Well, all this are just anticipation.
It might or might not happen but at least if that happens, we have a game plan.
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