ESNT trade ideas
ESSENT GROUP LTD Opportunity Hello traders, ESSENT GROUP LTD is in a fake bearish trend with a large past buy volume and an upside down hammer candle. By zooming in on the TIMEFRAME M1 we observed a dash with a large volume of purchase exchanged it is about to interfere on the top of the bollinger to test it. With the Momentum we start at the top of the range for a new test to come Precision view (on the TIMEFRAME M15). There is a great chance of breaking the price when the zone is reached to access the one above and seek the next highest. With pre-test high and then breakout of an excess range (on TIMEFRAME H4) and adjustment on the first finished high of excess (of TIMEFRAME H4) for (TIMEFRAME H1). Followed by a test attempt on the top of the bullish channel with a symbolic choffre of 50.00.
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ESNT more like, DSNTLooks like break of a neckline on a weekly and daily chart. A sloppy head and shoulders. Symmetry support held at $48.15 this morning after earnings, but my dowsing suggests selling rallies with a trend reversal, and that ESSENT is in DESCENT.
2 Bar daily squeeze likely to fire short, and I expect downward pressure on indexes, so this looks like the beginning of a downtrend.
I wouldn't want to see it close above it's 20 period daily MA (now at 51.30), but stop at $52.
Entry anywhere under there.
Hold ~9 weeks. Target $34.38 area
Buy mid-term with ENSTMy strategy is to combine several techniques at once:
+ Price channel and trend line: help me identify the direction of the price,
+ Supply - demand: help me identify the reversal position,
+ Elliott wave: help me determine the cycle of price,
+ Candlestick pattern and price action: Help me correct the position to the order
Buy/Sell signals for ESNTNot very sure if my idea will hold through - but I'm planning to sell in the top blue band, hold in the middle green bank and buy in the bottom blue band. Of course, all this assuming trend continues. BVPS line below gives rough idea in general overall trend. Funnily enough, the RSI or MACD plots don't quite corroborate.
Earnings Stock of the Day: ESNTEssent Group LTD is in the Financial Services Sector under Specialty Finance. This is a relatively new industry that is going to have growth in the next decade as more specialty finance services companies go to IPO. The opportunities come from Cloud Technology’s second phase of new displacement technologies, such as Artificial Intelligence. ESNT is working on a bottoming formation after a correction from a recent high. It attempted to fill the gap down caused by HFTs gapping the stock in April of this year. The rectangle on the chart is when this stock had potential for a watchlist candidate as a Shift of Sentiment™ pattern occurred. The stock peaked and topped in 2018. The pattern is still at risk for more downside and is not a watchlist candidate at this time, but it is reporting earnings today. The stock must complete this bottom formation and then challenge the previous highs to resume an uptrend. That will take time.
ESNT: Another Great Invesrment in a Super Stock...just posting another invesrment...
Holding Time Before Review: 3 months to 52 Weeks
Price and Fundamental Review Target: $52
Plan: To hold beyond the 52 week holding period, then review company fundamentals either at $52 or at the 3 month holding period or after the 52 week holding period.
ESNT: Super Stock (fundamental-Techno Investment)ESNT has pulled back to a level where I wanted to add, and I did add.
Benchmark Levels: $42 to $52 Watch level to re-evaluate the company and their prospects going forward
Short Fundamental Investment Rationale:
- They are making money annually and quarterly and are not going to go out of business.
- They are making money for their investors.
- The USA economy is in a confirmed uptrend and the indices are making higher highs
- The beginning stages of economic growth although slow, it is still quite real.
Technical:
- Fib confluence
- Channel support
- pullback