SAMAIDAN, where the next low?The price has broken through multiple support levels, showing continued weakness with no strong reversal signals yet. The downtrend remains intact, and unless a solid base is formed, further downside movement is possible.
Key Considerations:
Support & Reversal Area: As no significant buying pressure has emerged, the next key level to watch is where price stabilizes and forms a potential reversal pattern, such as a double bottom, bullish divergence on RSI, or strong volume accumulation.
RSI & MACD Signals: If RSI reaches oversold conditions with bullish divergence while MACD starts to turn upward, it could indicate a possible reversal. However, confirmation is needed before considering an entry.
Trend Strength: The current price action suggests weak momentum, and blindly accumulating at this stage carries high risk. Waiting for clearer signs of stabilization or a confirmed breakout is a more prudent approach.
Should You Start Collecting?
For myself, I wouldn’t rush into accumulating blindly. Instead, I would:
1. Wait for a Base Formation: Look for strong support and consolidation before considering entry.
2. Watch for Volume Confirmation: Increased buying volume at support can indicate institutional accumulation.
3. Monitor Key Indicators: Oversold RSI, MACD crossover above zero, or bullish candlestick patterns could signal a potential turnaround.
Potential Trade Plan:
If a strong support emerges, look for confirmation before entering.
If the downtrend continues, stay patient and wait for a reversal signal.
Avoid catching a falling knife.... let the market show clear signs of strength first.
Disclaimer: Please be informed that all stock picks are solely for educational and discussion purposes; they are neither trading advice nor an invitation to trade. For trading advice, please consult your remisier or dealer representative.
