Hey guys!
This setup looks too good to be true. I just bought some spot shares because this weekly bullish divergence is huge and when it does play out, this 7% dividend stock will rally and be a great hold for long term investors.
This RSI divergence shows momentum trying to change, long term holders buying from short sellers and panic sellers. Also we can clearly see 5 waves down from the top, totaling a 69%ish drop from ATH. In my opinion, there is a high likelihood that 16.16$ CAD is the bottom for this stock.
This setup looks too good to be true. I just bought some spot shares because this weekly bullish divergence is huge and when it does play out, this 7% dividend stock will rally and be a great hold for long term investors.
This RSI divergence shows momentum trying to change, long term holders buying from short sellers and panic sellers. Also we can clearly see 5 waves down from the top, totaling a 69%ish drop from ATH. In my opinion, there is a high likelihood that 16.16$ CAD is the bottom for this stock.
Trade active
Currently at resistance, could take partial profit or just let it ride and move the stop loss up.Note
To add some context, here is the Logarithmic zoomed in on the daily. It seems to be forming a round bottom. We will have to retest that theory later on, if this arc is reached again by price action. But for now the major fib level has been reclaimed, and backtested. Effectively creating a ''spring'' in EW under 17,72$, which is also the 0.5 fibonacci level from ATL to ATH in Log scale. Again, there is so much confluence in this area.
As seen on this chart, it is also previous resistance (in 2006), that has now turned to support.
And to add even more confluence, we have this very clean Log parallel channel, tagging the lows 3 times (generational buying opportunities).
The fact that nobody is watching this stock also gives me a lot of confidence, as a contrarian investor, not just a trader.
Good luck with your trades guys. Look up my idea on Barrick Gold for a similar bottoming setup which could provide long term opportunity as well as short term upside.
Note
Also note, from a macro perspective. There will be rate cuts later this year. Maybe more than anticipated given the current situation with the economy. Green energy companies like Northland Power are constantly investing in new projects and developments, they require a lot of capital. So of course, companies like NPI can benefit greatly from rate cuts, in fact, more than most types of businesses.
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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.