QIHU Breakout - Possible IHS with some resistance near-byafter a 14% run in the current situation this breakout may mean a lot. It allows the price to travel through some levels without hitting overbought on indicators.
- Both Daily and weekly MACD are bullish as the stock been diving for a long time
- Breakout of red down channels, and nearing on the resistance from previous tops with strength
- Volumes are nice, and do support the possible Invers head and shoulder formation
- IHS is still to be confirmed with the breach of the neckline, but once breached, the price is would
a) still be in the blue channel
b) may breach the red resistance
c) be of strength again due to the breaches, and have high volume.
Ideally i would like to see a short retracement between the resistances, and a sharp breach of them up with 10%+ movement
A good bet now, and a safer bet later. I would have also expected a touch of the blue support from previous bottoms, possible double bottom and then a bounce, but a price action before that forms a IHS and makes room for similar play still.
QIHU
A possible long entry on QIHU1 - Long spread candle on high volume that closes slightly off its lows, but the next candle is up on increasing volume. Notice also that the next candle touches new lows. Accumulation starts here
2 - A low volume narrow spread candle: lack of demand
3 - Again a high spread candle on high volume, the next candle touches new lows but closes higher: another accumulation sign
4 - Increasing volume on up bar, but the closure is off the highs. We are not ready for higher prices yet
5 - Narrow spread candle on very low volume and the next candle closes higher on increasing volume: a successful test of no supply
6 - Price rises but there still are sellers up here since the candle closes in its middle on increasing volume and the next candle closes lower
7 - A narrow spread candle that closes off its lows on increasing volume: accumulation sign
8 - Another accumulation sign: long spread down candle on increasing volume but next candle is up
9 - Successful test of no supply
10 - Lack of demand after a rally, a retracement could start from here
11 - Failed test of no supply since volume is high
12 - Here we have another test. Next candle is technically a confirmation, but the volume is low, almost equal to that of the test candle. A good long entry could be at the breakout of candle 12's highs.
