KGN - Medium term Bearish Trend Confirmation
Updated
Bearish Trend Confirmation Indications:
1. The trend has got weak on the weekly and Monthly with Bearish Engulfing Candles and High Volume
2. The price has broken the trendline and formed a lower High and a lower Low which is confirmation of a bearish trend
3. The down move was a powerful and impulsive wave
I expect price to retrace on the upside, and I expect price to get weak at or near (Resistance 1 ~ $20.00 level) or (Resistance 2 ~ $22.50 level), where sellers will attempt to dump the stock. I expect price to get dumped. The ideal level and extremely Strong Support Zone is between $9.00 - $10.00, but it is not necessary that price may drop all the way down to $10.00. There may be little swings on the way down but will have to see where KGN finds strong support. I would be a confident buyer at that strong support level for a long term position.
Please note these are my own notes, by no means trading advice. Please do your own research before entering into any trade.
1. The trend has got weak on the weekly and Monthly with Bearish Engulfing Candles and High Volume
2. The price has broken the trendline and formed a lower High and a lower Low which is confirmation of a bearish trend
3. The down move was a powerful and impulsive wave
I expect price to retrace on the upside, and I expect price to get weak at or near (Resistance 1 ~ $20.00 level) or (Resistance 2 ~ $22.50 level), where sellers will attempt to dump the stock. I expect price to get dumped. The ideal level and extremely Strong Support Zone is between $9.00 - $10.00, but it is not necessary that price may drop all the way down to $10.00. There may be little swings on the way down but will have to see where KGN finds strong support. I would be a confident buyer at that strong support level for a long term position.
Please note these are my own notes, by no means trading advice. Please do your own research before entering into any trade.
Note
Price consolidating at Resistance 1 ~ $18.00 level.Note
Note
The drop from the highs was impulsive and the recent wave up has been going up in a corrective fashion, which still makes me think that we may see a big drop to the downside. We may see aggressive profit taking in the days to come.Note
Note
Price behavior and wave analysis show that price is moving up in a corrective fashion. I expect this corrective wave to the upside end soon and price to drop lower. If the Support of $15.50 does not hold, then expect an acceleration in selling pressure towards the Strong Support Zone of $9.50 - $10.00.Note
Note
KGN has been rejected strongly from its Resistance Zone as expected. We can see strong Bearish Candlesticks, coupled with Strong Bearish Volume and MACD has crossed indicating that we may witness strong move to the downside. If the Support of $15.50 does not hold, then expect an acceleration in selling pressure towards the Strong Support Zone of $9.50 - $10.00.
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.