Long
AMRX 3/12/21
Updated
Daily Chart:
Currently, price is broken out of an Accumulation phase which lasted around 528 days. During that side ways phase, price exhibited a lot of buyer strength. After establishing Support area @ 2.54 and Resistance area @ 5.43, price made a series of higher lows into resistance and an upwards trendline. There was a Golden cross on 1/21/21 followed by a build up of price at resistance. The build up at resistance shows us buyer strength by there willingness to continue to buy at higher prices and preventing the price from dropping. This was followed by a breakout from resistance on 2/8/21 making it a 580 day high. From there, price made a pullback to previous resistance level and made a full bounce back to the break out highs and turning previous support into resistance. This is all extremely bullish and I will now look to enter this trade. Will investigate lower time frame from entry.
1HR Chart:
Here we can get a clearer picture of the Support and Resistance levels before we attempt to enter this trade. The support levels have been established between 4.71-5.01 area and resistance levels between 5.86-6.18. Price has now made several swings between this range with the last swing up being a parabolic move into the resistance level. This leads me to believe there wasn’t much strength to the move and price might be pulling back to support levels at least one more time. On the Stochastic, the price was oversold and has fallen under the 80 mark and it has also created a divergence with price. As you can see, price is currently at two equal tops at resistance but the Stochastic has lower highs and a downward slope signaling the move up is losing momentum. Looking at the MACD, it is currently under its signal also signaling to us the price might start to make a move downwards. To add to this, price is also overextended from the 10, 20, & 50 EMAs on the daily chart.
There are 3 options here:
1) Go Short back to resistance to then buy back. This is a risky move because there is a lot of buyer support and pressure on the Daily chart but price on the 1hr chart at resistance looks a bit weak. Entry: 6.13, Stop: 6.38(-4.48%), Target: 5.09
2) Wait on the sidelines until price swings back to the Support area and buy. Entry: 5.00 Stop: 4.47(-10.74%)
3) Enter trade now. This will be a riskier move because the stop loss will have to be set under the support level. Too much will be at risk and you will need to size up trade accordingly. Entry: 6.17, Stop: 4.47(-27.76)
*IF, I enter at option #2 then I will be treating trade as a SWING trade. Once price comes back up and reaches 6.00 range, I will set a stop at 5.75 just incase price decides to take another swing downwards. IF, the stop loss of 5.75 is not broken and price continues to climb and break past resistance, THEN my next target area will be between 11.91-14.51.
Also, if price decides to break above resistance, I will look to enter on minor pullback to resistance or emas
Currently, price is broken out of an Accumulation phase which lasted around 528 days. During that side ways phase, price exhibited a lot of buyer strength. After establishing Support area @ 2.54 and Resistance area @ 5.43, price made a series of higher lows into resistance and an upwards trendline. There was a Golden cross on 1/21/21 followed by a build up of price at resistance. The build up at resistance shows us buyer strength by there willingness to continue to buy at higher prices and preventing the price from dropping. This was followed by a breakout from resistance on 2/8/21 making it a 580 day high. From there, price made a pullback to previous resistance level and made a full bounce back to the break out highs and turning previous support into resistance. This is all extremely bullish and I will now look to enter this trade. Will investigate lower time frame from entry.
1HR Chart:
Here we can get a clearer picture of the Support and Resistance levels before we attempt to enter this trade. The support levels have been established between 4.71-5.01 area and resistance levels between 5.86-6.18. Price has now made several swings between this range with the last swing up being a parabolic move into the resistance level. This leads me to believe there wasn’t much strength to the move and price might be pulling back to support levels at least one more time. On the Stochastic, the price was oversold and has fallen under the 80 mark and it has also created a divergence with price. As you can see, price is currently at two equal tops at resistance but the Stochastic has lower highs and a downward slope signaling the move up is losing momentum. Looking at the MACD, it is currently under its signal also signaling to us the price might start to make a move downwards. To add to this, price is also overextended from the 10, 20, & 50 EMAs on the daily chart.
There are 3 options here:
1) Go Short back to resistance to then buy back. This is a risky move because there is a lot of buyer support and pressure on the Daily chart but price on the 1hr chart at resistance looks a bit weak. Entry: 6.13, Stop: 6.38(-4.48%), Target: 5.09
2) Wait on the sidelines until price swings back to the Support area and buy. Entry: 5.00 Stop: 4.47(-10.74%)
3) Enter trade now. This will be a riskier move because the stop loss will have to be set under the support level. Too much will be at risk and you will need to size up trade accordingly. Entry: 6.17, Stop: 4.47(-27.76)
*IF, I enter at option #2 then I will be treating trade as a SWING trade. Once price comes back up and reaches 6.00 range, I will set a stop at 5.75 just incase price decides to take another swing downwards. IF, the stop loss of 5.75 is not broken and price continues to climb and break past resistance, THEN my next target area will be between 11.91-14.51.
Also, if price decides to break above resistance, I will look to enter on minor pullback to resistance or emas
Note
the stochastic is "Overbought" not "oversold".Note
AMRX broke above resistance. I will now look to enter on minor flag or pull back to resistance or EMANote
1hr Chart:Price is currently sitting on 10ema. If a very strong move up occurs, it might bounce off the 10ema. For this reason I will keep an eye out for any candle stick reversal patterns in this area. 6.72 is the current support area which is also supported by 10ema. Will zoom into 15min chart for further short term analysis.
15min Chart:
Here we have a clearer view of where price is sitting. Support area @ 6.72 and Resistance area @ 6.83. It is also has currently of the 50ema as well. IF price breaks above 6.85, THEN I will buy with a stop loss @ 6.57. IF this traded is gets stopped @ 6.57, THEN I will look for possible reversal patterns @ 6.18 for reentry
Trade active
price fell below support level of 6.72 and bounce back into the range rejecting lower prices. Will be entering trade.Entry: 6.80
Stop loss: 6.56(-3.47%)
Trade closed: stop reached
Stopped at 6.56(-3.47%)Trade active
Price made a full pullback to 6.24 and bounce back. Reentered trade.Entry: 6.57
Stop: 6.14
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