Karex is in a very bad downtrend whether long term or short term. Therefore, this stock might not be an ideal stock to buy right now. There is still no end to the downtrend.
When you have a stock that is in a downtrend in so many time frames, it is best to stand aside in this stock.
Let us take a look at some of the charts below to see what is happening to Karex.
The chart above is the daily chart of Karex.
As you can see, this stock is in a bad daily downtrend. A stock that is in a downtrend will keep going down till the trend changes. It broke an uptrendline and proceeded to move lower. Then a few days ago, it broke below a consolidation box. This is usually a bearish continuation pattern and will usually send the stock lower.
The fact that the stock stays below the declining 200 MA shows us that this stock is very bearish in the long term.
The chart above is the weekly chart of Karex.
It has made a complete Stage 1 to Stage 4 cycle. From boom to bust.
Recently, it has broken below a long term support area and this is extremely negative for this stock from a technical point of view. Therefore, there is a big possibility for this stock to move lower.
How low, I do not know. There is no support area to watch and therefore, one should remain bearish on this stock till the trend changes.
Last of all, this is the monthly chart.
You can see that it is so bearish even in the monthly chart. The stock actually warned investors back in early 2016 that it was topping out. There was a very big monthly super topping tail and then the stock broke a long term uptrend line.
This is a stock that is very bearish.
If you plan to buy this stock, perhaps you might want to consider another stock that has more potential.
Mar 23, 21 08:25 AM
This week let us take a look at the SPX and TSLA. See what we can learn from their charts.
Mar 19, 21 05:24 AM
In this week we will have a look at Bitcoin, ETN and MAT, SPX and QQQ and see what we can learn from its chart.
Mar 09, 21 08:33 AM
In this week's lesson, let's take a look at bitcoin and makita.
Mar 03, 21 09:48 AM
In this week we will take a look at BRX and KIM and see what we can learn from the charts.
Feb 25, 21 07:54 AM
In this week we will have a look at VUZI, KSS, PBCT, CBRE, SPG, KPOWER and the lessons from their chart.