SMR approaching DCA opprtunityNYSE:SMR is approaching a potential entry point for the start of a DCA strategy for a long term hold.
SUMMARY
Wait to see where the price moves. Using a combination of RSI reaching 30 and the price falling to (with a 3 day filter) around $4 or if the price continues to fall then around $2 (another 3 day filter at this level too), begin entry with a DCA strategy. Alternatively, if the price rises above $6, after a 3 day filter, begin DCA. If the price starts forming a flag between $5 and $5.80, enter once RSI has reached 30 (for those with a higher risk appetite can just use the RSI as an indicator) or await a range breakout/down to either enter at the $4 or $2 or $6 level as described above with or without a three day filter.
The price was seeing exponential growth in the leadup to the latest quarterly earnings report and popped a few days after. However, the price has subsequently fallen back down and now seems to be forming a pattern.
It is unknown really what caused the price to jump. And there has not been any significant insider trading on the day (or lead up to the day) where the price recently peaked.
The company itself has a healthy balance sheet and debt/equity ratio. It is still in the growth phase as they build somewhat emerging tech (nuclear power is established but their approach to providing customers modular smaller power stations is unique) and a large part of their customer base is still a maturing market (power hungry data centres wanting their own onsite nuclear power source, particularly those now being setup for providing AI). The company's income statement reflects this as net income over the recent years remains negative and is also not showing an upwards trajectory.
With this in mind this would be a stock for a long term hold with a DCA investment strategy until, whichever comes first, either a total dollar figure invested is reached or the company becomes long term profitable (i.e. exits the growth phase).
With the recent price fluctuations it is crucial to not enter too early as due to the immature nature of the industry and company, the price also has a high likelihood of remaining at a low level for quite some time. However, a DCA entry opportunity is also forming based on one of the 3 of the more likely price trend scenarios described in the chart. Details on these are as follows.
Scenarios 1 and 2:
Wait to see which way the price begins to move and see if it falls to one of the two support levels identified, make use of the RSI to identify the optimum entry point. If the price falls to $4, add in a 3 day filter to see if the price doesn't fall further and likewise add in a 3 day filter if the price continues to fall from $4 to $2. If the RSI has reached 30, and the 3 day filter has shown that $4 or $2 were a support level begin DCA. If the price continues to fall below 2, halt the DCA to see where the price becomes stable and then restart once the RSI starts trending upwards again.
Scenario 3:
If the price begins ranging between $5.30 and $5.80, depending on risk appetite, begin DCA once the RSI reaches 30 or starts trending upwards. If the price breaks out above $6, then add in a 3 day filter to ensure the breakout wasn't a false dawn, and start the DCA investment independent of where the RSI is.
Rsi-divergence
🆘#PERP N-type structure was broken, and RSI diverged.DUMP!🧠The first is the divergence of the RSI indicator, which shows that most investors are leaving the market at a profit.
But we cannot open short positions based on this yet, because the uptrend is not over yet.
But when we see the N-shaped uptrend broken, we are convinced here that the downside is coming, so we set up a short position✔️
➡️Now we intend to lock in more than 80% of the profits and move SL to breakeven.
Gold XAUUSDXAUUSD GOLD, Fibonacci Retracement, Zones, RSI, Divergence, Trendline
Just Sharing Idea of Future view,
All time high 2075.11 Retracement 38.6 and failed to break high level again Retracement of 50.0 1617.68
High Rsi trendline and bottom Rsi in Divergence
Future looks if rejects 1967 Level then back support of 61.8 level or up high to break 2075.11 level Top high Rsi in Divergence mode that Period, Rsi in overbought now
JUST IDEA SHARING THANK YOU
USDZAR weekly trend at crossroads. Levels strongly supported.At first I thought that the USDZAR downtrend had been halted and a new uptrend started. However, price has respected a previous important high (August and November 2016)and has quickly moved down to just break past and sit at the previous low set March 2016. Currently it looks more like a long term range forming. The latest up moves were from potential political difficulties, then with the new ANC presidential election the pair moved down rapidly. There may be a further political wrangling until the elections in 2019 and it is likely to cause swings both up and down (difficult to predict).
Technically there is very good support at these levels and prices have held, however the levels have been broken. If the price continues strongly downward then a new down trend could start. If prices rise from this level, it could get stuck between these two levels (12.30 to 14.50). I am neutral at this immediate moment as I am waiting for price to determine what will continue to happen, it could go either way. Also if the range sets up then this too adds to the neutral stance which may be opportune for range trades.
There are opportunities to buy now with a stop just below at around 12.00 or 12.10 with the view to targets at 14.50. There is also an opportunity to sell as price could continue the general trend of the last two years. I am leaning more towards the side of Long at this moment as the RSI is very low (though currently bearish) and may be displaying bullish divergence. To be safe, we wait for confirmation from price action, with a smaller trade by money management for a long trade with space in the stop loss for a fake out.
GARTLEY PATTERN ON EURCAD - SHORT SETUPHi everyone! It looks like a gartley pattern we have on EURCAD. It also includes an ABCD Pattern ofcourse. RSI Divergence also support our idea to short. We should just wait for the reversal candle and the trade will be open.
p.s. do not trust me, trust your own strategies.
Sample RSI setups on #USDCADThe RSI can be a great trading tool if used properly. Most Traders use it for an overbought/oversold indicator and that is the worst use of the RSI.
As you can see from the chart, there are multiple short term trade setup in this one hourly chart. Although I am only showing 3 examples there are many more setups on this chart but did not want to make a mess of the chart. I will continue to post RSI trade setups and RSI educational information in the future as time allows.
BTC correction soonBTC correction is well overdue. Right when everyone is thinking BTC is going straight to 1000 and every pullback is bough is when the correction will start. Here are a few things to watch for:
1. Volume on the last pullback was big
2. MACD is crossing down
3. RSI negative divergence
4. Look for a lower high and then a lower low for confirmation
Eurusd TCT+ structure+ RSI long setupHey traders I have got some reasons to long the pullback from 1.06028 that is the Rsi divergence and the structure support. Would like to see the price moving above 1.06744.
1st target would be the Retest of the final point of the impulse and the 2nd target is to the 1.618.
Good luck
GBPUSD - Falling WedgeOn the GBPUSD a Falling Wedge was drawn. In this case it could signal a bullish move. Bears are putting a lot of pressure on the cable because the rate hikes were postponed. From the technical perspective, though, a break above 1.6600 could trigger a rally to retest the trend line. A false breakout above the current resistance would be a negative signal. This is a counter trend move, so everyone should be careful :)