AZJ Long AnalysisOur comprehensive analysis points towards a bullish outlook for AZJ, underpinned by several notable factors:
1. **Weekly Overhead Trendline**: It's crucial to acknowledge that AZJ is presently trading below its established weekly trendline, signifying a bearish trend. Consequently, this market condition lends itself more to short-term trading strategies rather than long-term investments.
2. **Strong Support Above .5 Fib Level**: AZJ has consistently demonstrated robust support above the .5 Fibonacci retracement level, a positive sign. However, it's of utmost importance to underscore the significance of maintaining this support level above $3.53 to sustain the prevailing bullish sentiment.
3. **Falling Wedge Pattern**: A falling wedge pattern is forming, suggesting the potential for a bullish reversal.
4. **Below the 20MA and 50MA**: The asset is currently trading below both the 20-day and 50-day Moving Averages.
5. **Entry at $3.57 with Secondary Entry at $3.63**: Our recommended entry point for this trade is at $3.57, capitalizing on the presence of strong support and the potential for a bounce from this level. Additionally, consider a secondary entry at $3.63, as it aligns with the 20-day Moving Average and offers the possibility of reclaiming the 200-day Moving Average.
6. **Take Profit Target at $4**: We've established our take profit level at the current year's high and the weekly 200-day Moving Average resistance. This target aligns with key resistance levels, making it a strategically sound choice.
7. **RSI Indicator**: The Relative Strength Index (RSI) is presently on the rise, even as the price is falling, suggesting bullish divergence to the upside. This divergence is seen as a positive signal.
**Risk/Reward Ratio**: The risk/reward ratio for this trade is notably favorable, currently standing at 6. This ratio implies that the potential reward significantly outweighs the associated risk.
In summary, despite the bearish signal emanating from the weekly trendline, our analysis strongly hints at a potentially profitable short-term trading opportunity in AZJ. By entering the trade at $3.57, and considering a secondary entry at $3.63, you can leverage the presence of strong support and promising technical patterns. Nevertheless, remain vigilant, closely monitor market developments, and be prepared to adapt your strategy in response to changing conditions."
