KNC Conslidating & Coiling Up To BREAK RESISTANCEHello Traders,
KNC Broke out from a falling wedge and created a flag formation. It continues to coil up and I expect an eventual rise to about $1 and possibly as high as $1.4. We should consolidate around $1 but at this point, we'll need to see how this plays out. Currently there is a building of a bullish divergence on the 15 minute RSI. So I expect a move up soon but if we don't break the trendline, it could double bottom at .61
There are two ways to play this trade.
#1 - If we break down, watch for a bounce on at the 50% fib at .61 (double bottom), we could go as low as the trendline at .57 too. If we bounce there, put in a long and hold with a stop loss no greater than .55
#2 - Wait for a breakout to the upside with a retest of the flag to put in a buy order.
As always, this is not financial advice, do your own due diligence and only invest based on your decisions.
Cheers!
