SE has plunged 36% from it's peak on 20 Oct and is now back at a mideterm trendline support. I see a bullish divergence building up on it's weekly and with the high volume sell off last week, it is likely that most of the selling is done now.
The last 3 candles on the daily is interesting. A doji followed by 2 pinbars, each inching lower towards the trendline support. My guess is that the weak bulls have been exiting the stock on each of these days but new bulls kept coming in to push the close off the lows of the day.
I will be looking to long here (preferably as it goes above yesterday's candle high at 252, confirming the momentum) with an initial stop loss about $1 below the trendline support.
Despite the 36% "discount" from recent highs, it's valuation is still rich at current levels and it's anybody's guess whether it could surpass the last high at 372 going forward.
Hence I will be looking to take scale out at the various fib levels on the way up (between 288 to 320).
p/s trade will be scratched if SE breaks below trendline in the near term (though this is looking less likely at the moment).
Disclaimer: TA is about improving our odds of a successful trade (not a guarantee). This is just my own analysis and opinion for discussion and is not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Thank you. Do give me a thumbs up if you agree. Feel free to let me know what you think! :)
The last 3 candles on the daily is interesting. A doji followed by 2 pinbars, each inching lower towards the trendline support. My guess is that the weak bulls have been exiting the stock on each of these days but new bulls kept coming in to push the close off the lows of the day.
I will be looking to long here (preferably as it goes above yesterday's candle high at 252, confirming the momentum) with an initial stop loss about $1 below the trendline support.
Despite the 36% "discount" from recent highs, it's valuation is still rich at current levels and it's anybody's guess whether it could surpass the last high at 372 going forward.
Hence I will be looking to take scale out at the various fib levels on the way up (between 288 to 320).
p/s trade will be scratched if SE breaks below trendline in the near term (though this is looking less likely at the moment).
Disclaimer: TA is about improving our odds of a successful trade (not a guarantee). This is just my own analysis and opinion for discussion and is not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Thank you. Do give me a thumbs up if you agree. Feel free to let me know what you think! :)
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.