Valuetronics - Upside may be limitedFor traders who like to long, the key resistance at 0.62 is a key crucial level, rejecting it will see the bear resuming its sell down. The only thing supporting the bullish outlook is that the hammer found its support at the immediate support which confluence with the 50% Fibonacci retracement level of the whole bullish up move since 18th March.
BN2 trade ideas
Valuetronic clear to sell now.
Refer to the above post.
On 3rd of April, we believe that Valuetronics Holdings rebound may continue to the 161.8% extension level and price did travel to the level at 0.595, short of 0.05 of our target price. The price did have some reaction by selling down on Monday and based on the technical, the stock is set to continue its downside:
1. The stock had a sell down at the supply level confluence with the 161.8% extension level of 0.530-0.435.
2. Price action indicate that the stock has completed the bearish flag.
3. Evening star formation at the top of the flag and 161.8% extension level.
4. Death cross is still valid with prices trending way below the 50 and 200 Moving averages.
5. Stochastic Oscillator shows an overbought crosses above the 80 overbought zone.
