GSK Death Cross my be hugely bullish after all !GlaxoSmithKlein (GSK) just formed a Death Cross on the 1D time-frame, which is when the 1D MA50 (blue trend-line) crosses below the 1D MA200 (orange trend-line). This is technically a bearish pattern but last time it formed (March 24 2020) was exactly on the bottom of the COVID crash and the price recovered rapidly.
That was of course in the aftermath of the massive economic package in an attempt to support the economy from the lockdown but even now there is upside potential and some levels to consider on the short-term.
As you see, since April 11, the stock has been trading within a perfect Channel Down. This indicates a systematic downtrend. As long as the 1D MA50 holds, such rises are sell opportunities towards a Lower Low, in which case its on the 0.236 now. Since we are trading so close to the 1D MA50, a tight sell now with the SL located at the top of the Channel Down, has an excellent Risk/ Reward ratio.
Similarly, if the price breaks above the top of the Channel Down, the R/R is favorable in going on a tight buy targeting the upper Fibs and ultimately the 47.00 Resistance. Notice how the 1D RSI bounced off near the 30.00 oversold level, which has initiated massive rebounds another 4 times within the long-term Channel Up.
--------------------------------------------------------------------------------------------------------
** Please support this idea with your likes and comments, it is the best way to keep it relevant and support me. **
--------------------------------------------------------------------------------------------------------
