BTA.UK - Daily
Our expectations: Long-term downward trend with price after correction to key resistance level. SL: 2.42.
Alternative scenario: If the price moves over the resistance zone and stays there, the negative scenario will be spoiled, and we are more likely to see an increase in the stock price.
Comment: Price in long-term downward trend after upward adjustment to key resistance level formed by main downward diagonal. horizontal resistance, 200SMA and 23.6% Fibonacci correction of the main trend. 50 and 200SMA remain bearish - Short trend is in effect. What we should pay the greatest attention to is pure Price Action. Let's take a closer look at the daily bars:
After the formation of the island formation (in red), the traffic several times tested the opening price after the gauge in the downward direction - failed. After reaching the main bearish diagonal and 200SMA, the price registers the formation of an inner bar, characteristic of the trend turning - the likely end of the corrective movement.
The combination of indicators CCI14/50 still does not signal short, but both point down, which implies lower opening prices.
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