MOMO trade ideas
MOMO is oversold and should go higher as market recoversMorgan Stanley came forward with a $51 PT while other companies also have a positive outlook on the future prospects of MOMO. With the acquisition of Tantan and a low P/E, Mr. Market will eventually realize MOMO is an undervalued asset. If the market shows signs of reduced volatility in April, this should break the wall around $40-41 and test ATH levels.
MOMO is making a reversalPotential Reversal in MOMO. .
+ EMA20 Crossed Above EMA50
+ Price stay above EMA20, RMA50 and EMA200
+ Price broke Downtrend Line and making Higher High
+ Price making Lower Low and tested Uptrend Line several times.
+ Nice Volume
+ Break Upper Bollinger Band
+ Strong +ve Force Index.
Expect to pull back a little to test EMA20 and make another Higher Low before continue to move uptrend to First Target of $39.
Next Target is to close the GAP down at $41
and Complete Rounding Bottom pattern at $46.
Conservative Trader : Put in watch-list. Partial Entry after pullback and new Higher Low form at around EMA20.
Aggressive Trader : Long with stop loss at previous Higher Low.
MOMO Door number 1, 2 or 3? MOMO broke above the trend line. If it stays above the 38.2 Fib at USD 31.39 level this could be the long awaited reversal, but the MA's are not lined up yet. It's also likely that the price will fall through the new found support and keep going lower, or even fall back below the trend line, which is the least likely case.