Afterpay December Santa Rally?
Updated
For the last 3 weeks I have seen Afterpay has been forming a wedging pattern (bigger than any previous similar pattern). A breakout of this pattern will shoot the share price to an immediate price target of $112.
The downside potential still needs to be considered if breakout below the current price level. In the past two years of the month of December, Afterpay has had history of closing lower than the opening.
However, there are more catalysts that will trigger an upside potential such as the stock market in general has shown strength in recent weeks. I am expecting Afterpay to rally into December/January before a slight correction or consolidation.
The downside potential still needs to be considered if breakout below the current price level. In the past two years of the month of December, Afterpay has had history of closing lower than the opening.
However, there are more catalysts that will trigger an upside potential such as the stock market in general has shown strength in recent weeks. I am expecting Afterpay to rally into December/January before a slight correction or consolidation.
Note
Afterpay continues to form the symmetrical pattern. A breakout is expected in coming days.Note
With red candle today in line with upward converging trendline, Afterpay continues to form symmetrical pattern. Overall I am still bullish on Afterpay, although I will not discount any potential downward movement as this might change the overall trend in upcoming days.Trade active
Afterpay has broken the wedging pattern. Upward movement is expected with immediate price target of $112. The continuation to that price level will depend on upcoming days. If the share price fall below $96, it will start an immediate downward trendTrade closed: target reached
Afterpay has reached my immediate target of $112. One green candle above this level will continue its trend moving upward. APT inclusion to ASX20 will stabilise the price beyond December 21.
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