EML - A breakout to a new ATH - but will it hold
EML is an ASX listed stock in the By Now Pay Later space which has recently seen a lot of chatter.
Looking at the chart, the stock appeared to be in a long period of consolidation between early May 2020 to December 2020, with price mostly below the 200 day MA during this time. A break out from the consolidation range looks to have occurred during the first week of December 2020 with a new upwards trend establish which ran to around mid-Dec (around the 18th).
This was followed by a fairly sharp pullback to the 50 day MA which has been acting as support for the last couple of months. Following earnings on 17 Feb, the stock has seen a significant gap-up (around 12%), which has seen the stock consolidating for the last 2 months. Today (7 April 2021), the stock has had another significant gap-up (around 6-7%) which has seen price break out of the consolidation range. Today's movement has been volatile (around 10%) but if the momentum can be maintained across the next couple of days, I think this stock has a good chance of continuing its uptrend in both the short and long term.
Happy Trading,
Nick the Trader Guy
Check out my blog at nickthetraderguy.com to follow the progress of trader going from boom to bust to consistently profitable.
Looking at the chart, the stock appeared to be in a long period of consolidation between early May 2020 to December 2020, with price mostly below the 200 day MA during this time. A break out from the consolidation range looks to have occurred during the first week of December 2020 with a new upwards trend establish which ran to around mid-Dec (around the 18th).
This was followed by a fairly sharp pullback to the 50 day MA which has been acting as support for the last couple of months. Following earnings on 17 Feb, the stock has seen a significant gap-up (around 12%), which has seen the stock consolidating for the last 2 months. Today (7 April 2021), the stock has had another significant gap-up (around 6-7%) which has seen price break out of the consolidation range. Today's movement has been volatile (around 10%) but if the momentum can be maintained across the next couple of days, I think this stock has a good chance of continuing its uptrend in both the short and long term.
Happy Trading,
Nick the Trader Guy
Check out my blog at nickthetraderguy.com to follow the progress of trader going from boom to bust to consistently profitable.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.