Bosung Power Tech - retest before climbingThis is my idea on Bosung Power Tech,
but I want to first address that it takes extra caution to enter an overbought stock like this one.
With that in mind, let's continue.
The strategy behind this idea is that price can use RSI's support line to regain the bullish momentum. This is often why we see price climbing before or without touching its support line or zone. However, relying just on RSI could be risky which is why we wait for other evidences before entering.
The price is just above its price action zone, which has historically acted as a resistance zone.
If the price dips back into this zone in next few days and shows a sign of reversal (such as tall bullish candle with its close breaking through the zone), WITH RSI rebounding on its support line, this would make a strong bullish signal.
Alternatively, the price move sideways inside the zone before reaching the support line of the price.
It is best to enter under 3930, ideally inside the price action zone.
The target would be red resistance line, around 4140 to 4200.
