$BCLI: a risky play with good potential upside
Updated
Hello fellow traders! Who bought the dip today? :)
Let's look at one of my positions that contrary to most of my other positions actually went up as the sell off ran in frenzy: BCLI. I have been scaling into BCLI for about two weeks after I identified the channel that formed after the huge drop of about 70% (look at that gap!). My average price is $5.25. The stock broke above the channel today with a very bullish candle on decent and above average volume. I believe the catalyst was this piece of news from last week: bit.ly/3ccn5vZ (very technical but you can skip to the conclusion).
The price found resistance on the 50ema and that $5.83 historic resistance level but there are enough bullish indicators here to let that discourage us.
If you guys read my other analysis you should be familiar with my favorite indicators. The MACD is among them. Here it is growing steadily and is about to break above the 0 level. Looks pretty good. Additionally, we have +DI crossing -DI bullish and RSI crossing the 50 level bullish. Another important bullish signal is the bullish crossover about to happen between the 14ema and 21ema.
Now this is all fine but not everything is bullish so let's look from a broader angle so you guys have a better perspective. All faster emas crossed the 200ema bearish, which is not very good. These things are obviously part of market cycles--and that huge drop may have accelerated the bearish outlook of BCLI--so it doesn't mean it is all doom and gloom for BCLI but we need to thread carefully here. The good news is that after the fall the price consolidated within that channel range for about 40 candles, which is 2 months of consolidation. Seems to me that we are in a good position to start a move up.
This is one that you can certainly pass on but to me the upside potential is worth the risk, specially because I entered within the channel so I had a good idea where I should buy. I also have a stop loss strategically placed at this point because I am already in profit.
If you want to get in you can watch how the price moves tomorrow. Definitely don't go all in. Either DCA or wait for the price to find support on the top of the channel or even the 14/21ema if it retraces that much (I don't think it will but we saw what happened today so anything is possible).
That is all for this one. It is a riskier one but I though it was worth sharing with you guys because of the upside potential.
Safe trades!
Share the love:
If you get anything out of this TA, please like the chart so it moves up and others can benefit from my work. A simple click on the like button goes a long ways.
Follow for more:
I have an outstanding winning rate (check my other charts). If you want the best entry/exits just follow me, you won't regret. Thanks a lot!
***The ideas shared here are my opinion, not financial advise to place trades. Please do your own research before buying/selling stocks***
Let's look at one of my positions that contrary to most of my other positions actually went up as the sell off ran in frenzy: BCLI. I have been scaling into BCLI for about two weeks after I identified the channel that formed after the huge drop of about 70% (look at that gap!). My average price is $5.25. The stock broke above the channel today with a very bullish candle on decent and above average volume. I believe the catalyst was this piece of news from last week: bit.ly/3ccn5vZ (very technical but you can skip to the conclusion).
The price found resistance on the 50ema and that $5.83 historic resistance level but there are enough bullish indicators here to let that discourage us.
If you guys read my other analysis you should be familiar with my favorite indicators. The MACD is among them. Here it is growing steadily and is about to break above the 0 level. Looks pretty good. Additionally, we have +DI crossing -DI bullish and RSI crossing the 50 level bullish. Another important bullish signal is the bullish crossover about to happen between the 14ema and 21ema.
Now this is all fine but not everything is bullish so let's look from a broader angle so you guys have a better perspective. All faster emas crossed the 200ema bearish, which is not very good. These things are obviously part of market cycles--and that huge drop may have accelerated the bearish outlook of BCLI--so it doesn't mean it is all doom and gloom for BCLI but we need to thread carefully here. The good news is that after the fall the price consolidated within that channel range for about 40 candles, which is 2 months of consolidation. Seems to me that we are in a good position to start a move up.
This is one that you can certainly pass on but to me the upside potential is worth the risk, specially because I entered within the channel so I had a good idea where I should buy. I also have a stop loss strategically placed at this point because I am already in profit.
If you want to get in you can watch how the price moves tomorrow. Definitely don't go all in. Either DCA or wait for the price to find support on the top of the channel or even the 14/21ema if it retraces that much (I don't think it will but we saw what happened today so anything is possible).
That is all for this one. It is a riskier one but I though it was worth sharing with you guys because of the upside potential.
Safe trades!
Share the love:
If you get anything out of this TA, please like the chart so it moves up and others can benefit from my work. A simple click on the like button goes a long ways.
Follow for more:
I have an outstanding winning rate (check my other charts). If you want the best entry/exits just follow me, you won't regret. Thanks a lot!
***The ideas shared here are my opinion, not financial advise to place trades. Please do your own research before buying/selling stocks***
Note
BCLI looking good! Crossed that 50ema like a champ. I am up 25% already! 
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