Looking technically very strong.Looking technically very strong. Should it go beyond 12.30 zone then it will enter in 15 zone.
ONCO trade ideas
ONCO looking to break out soon.So I while back we looked at ONCO breaking up from a large descending triangle and we found a good entry.
Now a possible new entry point will present itself.
Breaking up from the previous triangle we've now completed an impulse with correction pattern, finding support on the 0.5 fib (red circles).
Above we need to break the SEK 174-177,- resistance before a continuation of the uptrend.
Currently we are forming a nice consolidation pattern and creating an ascending triangle in the process. Looks like a very clean setup for a break up. But we need to wait for a break of the resistance first before looking for an entry on the lower timeframes.
ONCO starting to look bullish.ONCO has huge FA bullish potential and now also starting to look bullish from a TA point of view.
What should we do?
GREEN scenario: Wait for the retest of the smaller blue trendline and potentially buy there to get a lower price but with less bullish confirmation. Or wait for the larger trendline to break for more bullish confirmation but a slightly higher price.
ORANGE scenario: Wait for the large trendline to be broken and support after a retest and then buy.
ONCO keeping an eye on breakout.ONCO has been consolidating for quite a while. The reason I'm looking at it now is because it has just found support on the daily cloud (not on the chart displayed) and just arrived at the bottom of the weekly cloud. So now let's see if it will enter the weekly cloud.
Once it does, I see a bullish scenario unfolding.
I've drawn 2 potential scenarios;
Scenario ORANGE:
- We get into the cloud and test the bottom of the cloud.
- We fill the gap at 119.70
- We test the bottom of the large triangle one more time.
- Then we break above the cloud and the triangle, retest the triangle and off we go!
Scenario GREEN:
- We break straight into the cloud and through.
- Retest the cloud and then break the triangle upward with a retest.
So let's see what will happen!
What's ONCO's story at the moment?'When in doubt, zoom out'. As ONCO is confusing me somewhat with mixed signals, I decided to take a look at the weekly chart only for now.
So we are inside a descending triangle. Which got broken to the downside during the 'covid crash', but the price recovered nicely back into it.
Long story short, we should wait until the price breaks up or down from this triangle before any real clarity on direction is there.
LONG argument:
- After a fake breakout of a pattern, often the actual breakout will be in the opposite direction.
- After the recovery from 77 to 145, a healthy retrace to almost (not quite) the 0.5 fib has been made and support subsequently was found.
- This 0.5 fib coincides with the bottom and support of the descending triangle.
- Fundamental analysis currently gives 240 as a target.
SHORT argument (short term):
- Lots of resistance overhead; 50MA, W cloud, horizontal resistance and downward trendline (blue).
- Still a gap at 119.70
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2 possible strategies:
- Buy whenever price reaches support around 110-115, trusting the fundamentals.
- Wait for a breakout of the pattern and then look for an entry.
Close eye on ONCOONCO is approaching an potential area of support on the daily cloud and long term horizontal area of support/resistance.
So I'm keeping an close eye on its reaction there.
If it can hold AND break the downward (blue) trendline, then that represents a good entry point.
