710.HKEX_Range Breakout and Retracement Trade_LongENTRY: 8.94
SL: 7.50
TP: 11.68
- ADX>20
- RSI<50,RSI<70
- Daily RS +ve
- Daily FFI +ve
- Daily MACD -ve
- Weekly RS +ve
- Weekly FFI +ve
- Weekly MACD +ve
- MAs are aligned.
- Breakout of range on 18 Jun 2021 with good volume.
- Moved to high of 11.68 on 21 Jul 2021 with increasing volume, and retraced on slightly lower volume to 50% Fib. level before signs of accumulation on 28 Jul 2021, 5 Aug 2021 and today. Between the accumulation dates, the retracement is under lower volume as well.
- Maintaining above 50% Fib. level and "P" Pivot Point will be important.
- Breakout of down trendline with volume today.
- Earnings announcement seems to be coming soon and it is in the electronic sector which is doing well globally during the pandemic. Hence, would expect a good earnings result to push the price higher.
710 trade ideas
HKEX:710, Potential profit 37%HKEX:710 has formed a strong bottom at 1.96. Today, it breaks the recent fractal with high volume. We believe that it would very likely be a real breakthrough.
Both MACD line are above 0 and they are continue to diverge.
ADX is DI+ > DI- and the ADX line is going to become a trend signal.
The first target would be the previous top 3.49, which tested for two times so we use this as our first target. If the candle stick pattern show that the stock is strong when it reach around 3.49, we will change our target. Let's see how it would be when it reach the first target.
Cut loss @2.1
Target @3.49
Buy in @current price