PIOC | Swing Trading SetupPIOC is currently trading at 153, and several technical indicators suggest a bullish reversal is imminent, presenting a strong buying opportunity. The Relative Strength Index (RSI) has recently dipped at 30 and currently at 35, indicating the asset is oversold and may soon experience upward pressure as buyers step in. Moreover, bearish divergence from its top of 185.40 price is observed which pulls the price downward. Additionally, the Moving Average Convergence Divergence (MACD) histogram is showing a waning bearish momentum, with MACD line poised to cross above the signal line, which historically signals a potential buy.
Moreover, the price action may face support around 141 level, a classic reversal pattern that often precedes a bullish breakout. This support level has held firm previously. The 200-day Exponential Moving Average lies at 137.60. The stock start rejecting from the top of 185.40 and currently at 91% oversold level which indicated a possible pull back can be expected from support zone. Lower Bollinger band level lies at 148.64, while middle and upper lies at 167.75 and 186.87 respectively.
Forecast:
In the near term, the script seems to target around 163
In the medium term, the script seems to target around 168
Recommendation:
It is recommended to consider initiating buying positions near 141 and set stop loss below 200-day EMA around 130.
Risk & Reward Ration= 1 : 2 (for first target of 163)
Risk & Reward Ration= 1 : 2.45 (for second target of 168)
Disclaimer: Do your own research before taking position.
