Another small cap primed for a breakout?Very clean range formation on the verge of a breakout. Price has rallied nicely into the top of range. We just need to see where the pullback comes to but overall, a great area to start accumulating. Ideally a bullish candle close on the monthly would indicate a “safer” entry. A quick and easy target would be the EQ of the FVG which is around the macro 50% level
*note the arrows are not time analysis just price pathway.
FWD trade ideas
Trend Base Analysis & DivergenceToday, I show this example for you to understand why bullish divergence is important for an entry order.
FWD.AX is selected because VectorVest indicator RT crossover occurred on 4 May which is the same day that Stochastic (8,3,3) crossover occurred
Value of RT changed from 0.97 (3 May) to 1.03 (4 May)
Value of RT yesterday was 1.53
If you hold this stock since the crossovers occurred on 4 May, you gain 30% return so far.
For beginners, you may also try the second entry on 29 July. Why? It is simply because of the bullish divergence. And also, the price actions struggled at the Fib Ret. 38.2% as well.
Your homework is to analyse JIN.AX, using the same strategies above and the markups on the graph. Show me why JIN.AX gained 10% in one day on 11 July.