TEVA.US - Weekly
Our expectations: Price in long-term downward trend and after correction to key levels of resistance. SL: 26.00.
Alternative Scenario: If the price moves above the resistance zone, the negative scenario will break and more likely to see stock price growth.
Comment - Long-term downward trend and price after correction to a key resistance zone formed by horizontal resistance, 23.6% Fibonacci correction of the main trend and upper diagonal of the downward channel. 50 and 200SMA remain in place - the trend remains in place. The RSI14 runs below 50, signaling that the corrective movement is over and a new bearish wave is fine. Price Action: In the last two months, the price twice tested the resistance zone between 24.50 and 25.00, with the first test we have a bearish reversing bar with a long shadow above, and the second Shooting Star formation with a subsequent big bear bar, completely covering the gap in ascending direction.
Positioning - The input options are two - aggressive now and conservative, after a 50% correction of the bear bar created last week. Because the aggressive input will give us a lower risk/return ratio, it's good to look at the conservative that will provide R:R = 1:3.5
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