Timeframe: D
Trend: Ascending
Deal Idea: Purchase, SL 50.69
Technical Comment: The company's shares are in a correction mode with close to 10%, passing below 50 and briefly below 200 periodic moving averages. The price is supported by the main trend, and DeMark is strongly in the resale zone. The Fibonacci Zone 50 is supporting, with stocks already signaling a trend reversal. This provides a prerequisite for finding long positions.
Fundamental Comment: The reason for the correction is the worse than expected reports and the poor performance of the business segment in which the company operates. However, the company remains with good expectations for the sector's prospects for 2020.
We can look for long positions when returning back above Fibo 50 and 200 for the confirmation period.
Alternatively, the price fails to keep above the levels in question, and sellers regain control of the price, with the expectation that the diagonal support will break. At this point, our bullish scenario will collapse.
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25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
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Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
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