ASX: LEL - predicted $1.40, soon to be a lithium giant.Hopefully we close above the 50ema today, otherwise we'll be opening bellow it on Monday.
I believe we've already broken out of our "bear" market.
Using the Volume Profile indicator, I've found key areas where price reverses its trend. Every dip bellow the POC has been followed by large growth. Considering SP hit a 2 month gain of 104% after it dipped bellow the POC, it's safe to say the market is reacting to that and retail investors are taking profits. This is healthy market movement after a company doubled their MC.
Now, SP is sitting at a very key level, perfectly sat within the .5 fib, and price action moving closely to the POC. A dip bellow it in my books really wouldn't be the end and could probably cause a huge jump in SP.
The 2 Month POC is going to act as a level of resistance once price action moves closer, but breaking that will mean huge moves.
Ghost trend isn't meant to represent expected SP movment, simply a guide to show current trend. (We've been moving up for months, clearly we're just looking at a healthy market retrace)
$1.40 Level could see some heavily selling once reached due to past double top pattern at that level.
LEL trade ideas
How To: Using Parallel Lines To Look For Entries Or Swing TradeSometimes it can be hard to see visually where the current price might be in terms of a longer term trend and whether the price might be at the top or the bottom (or the middle) of its range.
Depending on how you trade, you might want to dive in and look for a short term opportunity, or you might want to wait a little while for a bigger pullback and take a longer position on the stock.
Some of you might even want to wait until it gets closer to the top of the range and take a short position expecting it will go down.
Swing traders can use parallel channels as a really useful tool to take both sides of the trade as the stock goes up and down inside its channel.
In this video you will be able to see how to:
1. Add a parallel line / channel to your charts.
2. Add a horizontal support or resistance line to your chart and modify it.
3. Set an alert to notify you when the stock price might be crossing through these areas and send you a message.
Hopefully useful to some of you. Give it a thumbs up if it was :)
Angus.
