$JSESPP SPAR Group Ltd - Could SPAR Catch A Bid At Support Zone
Updated
Since peaking in February 2018 at 22700 zac, SPAR has retraced 40% but is hitting a critical support zone.
From an Elliott Wave perspective, the decline from the all-time high to the March 2020 covid-19 sell-off low at 14225 zac unfolded as an ABC zigzag for wave (A).
Wave (B) made a deep 88.6% Fibonacci retracement to peak at 21347 zac.
The current sell-off from 21347 zac seems to be unfolding in a textbook five wave impulse with wave 3 subdividing in a clear five waves, wave 4 does not overlap with wave 1 and wave 5 seems mature.
At this stage there is no price action evidence that a turn-around is imminent but price is trading at historical support/resistance in the 13484 to 10730 zac zone.
To create confluence, the 12872 to 10872 zac zone represents the price area where wave (C) is a 1.00 to 1.236 Fibonacci multiple of wave (A), a common ration for a (A)(B)(C) flat pattern.
Momentum is still clearly to the downside but this is a chart worth watching in the short-medium term.
From an Elliott Wave perspective, the decline from the all-time high to the March 2020 covid-19 sell-off low at 14225 zac unfolded as an ABC zigzag for wave (A).
Wave (B) made a deep 88.6% Fibonacci retracement to peak at 21347 zac.
The current sell-off from 21347 zac seems to be unfolding in a textbook five wave impulse with wave 3 subdividing in a clear five waves, wave 4 does not overlap with wave 1 and wave 5 seems mature.
At this stage there is no price action evidence that a turn-around is imminent but price is trading at historical support/resistance in the 13484 to 10730 zac zone.
To create confluence, the 12872 to 10872 zac zone represents the price area where wave (C) is a 1.00 to 1.236 Fibonacci multiple of wave (A), a common ration for a (A)(B)(C) flat pattern.
Momentum is still clearly to the downside but this is a chart worth watching in the short-medium term.
Trade active
JSESPP seems to have caught a good big at the support zone.The 5 wave sequence for wave (C) looks complete and a bottom could be in place.
The current rally up looks impulsive and i will be on the lookout for 5 waves to increase my confidence.
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