Blink broke out of a rounding bottom; may retest breakout level
Updated
On the weekly chart (second chart) it is possible to see that Blink broke out of a rounding bottom. The candles that preceded the breakout candle showed high volume, and the breakout candle also had decent volume. The long trend is definitely bullish.
On the daily chart, however, there is a clear bearish divergence forming between price and RSI. Also, for most of the recent sharp rises in price Blink has retraced to either the 21-ema on the weekly or the 21/14 emas on the daily. The 14-ema on the daily roughly coincides with the breakout of the rounding bottom (about $34), which is also the .5 fib retracement level of the last swing (if we consider the last candle the top of the swing).
We also need to keep in mind blink had started a small retracement the past couple of days. The sharp price rise today is most likely connected to this piece of news: fool.com/investing/2020/12/22/why-blink-charging-cbak-energy-and-enphase-energy/
It is very possible the price will continue to go higher as the momentum is bullish, specially after that piece of news that came out today. However, a pull back after the last swing high of about 92% to retest the rounding bottom breakout line would be healthy for a next push up and would be in line with how Blink's price has acted in the past.
I sold the previous rally at around $38 (bought at $25). If the price does retrace I am looking to jump back in at around $34 and $30 (the .618 fib retracement level and roughly where the 21-ema is sitting on the daily chart).
***THE IDEAS SHARED HERE ARE MY OPINION. THIS IS NOT FINANCIAL ADVISE TO PLACE TRADES. PLEASE DO YOUR OWN RESEARCH AND ANALYSIS BEFORE BUYING/SELLING STOCKS.***
On the daily chart, however, there is a clear bearish divergence forming between price and RSI. Also, for most of the recent sharp rises in price Blink has retraced to either the 21-ema on the weekly or the 21/14 emas on the daily. The 14-ema on the daily roughly coincides with the breakout of the rounding bottom (about $34), which is also the .5 fib retracement level of the last swing (if we consider the last candle the top of the swing).
We also need to keep in mind blink had started a small retracement the past couple of days. The sharp price rise today is most likely connected to this piece of news: fool.com/investing/2020/12/22/why-blink-charging-cbak-energy-and-enphase-energy/
It is very possible the price will continue to go higher as the momentum is bullish, specially after that piece of news that came out today. However, a pull back after the last swing high of about 92% to retest the rounding bottom breakout line would be healthy for a next push up and would be in line with how Blink's price has acted in the past.
I sold the previous rally at around $38 (bought at $25). If the price does retrace I am looking to jump back in at around $34 and $30 (the .618 fib retracement level and roughly where the 21-ema is sitting on the daily chart).
***THE IDEAS SHARED HERE ARE MY OPINION. THIS IS NOT FINANCIAL ADVISE TO PLACE TRADES. PLEASE DO YOUR OWN RESEARCH AND ANALYSIS BEFORE BUYING/SELLING STOCKS.***
Note
Weekly chart:Note
So BLINK finally retraced back to the rounding bottom ( pretty close: $36.6). I bought some shares at $38:
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