Accumulation In ProgressAccumulation in progress. Awaiting Support Validation at $37.
This is not Financial Advise, please do your own DD.
ACQ trade ideas
Auto Canada: Time to Buy: CanadaHappy New Year
By Sun Storm Investment Research
A Profit & Solutions Strategy
Disclaimer: I am not a financial advisor, so please do your own research before trading anything
ACQ.TO: Ascending Triangle, confirmedAscending Triangle, Confirmed
Pros:
Descending volume during formaiton
Volume Spike at break out
PPS above 50Ma and 200MA
200MA slowly ascending
250RSI above 50
RS above 0 and climbing
ATR climbing, more volatile
R/R above 16, very high
Price target:
PT = 30,75$
Starting to show some signs of life
Taking a birds eye view of this stock,it has clearly fell from grace and what gets me interested in these stocks is the potential upsides if they turn things around.
Zooming further in we can see the price action is currently in a massive wedge ( people who follow me knows I have a thing for falling wedges).
In the latest earnings report investors must had liked what they seen as it jumped from 8 to 13.7. Perhaps an overreaction, but it is perhaps also sentiment shifting, like how we have seen in the cannabis industry recently.
I think there are 2 scenarios that may occur.
1) price action goes back to the bottom of the wedge and it reacts very strongly and price action heads up towards the resistance and continues its cycle towards the apex. This would be a great trading opportunity. If you bought this at the OCtober and sold at December you coudl had doubled your stock
2) Imo this one is more likely due to sentiment shifting and the heavy amount of activity in the area of the green box as it creates strong support. We can see it already reacting strongly to it and on the 0.5 fib. Moreover, RSI and MACD and William r% is starting to bullishly diverge.
It is currently kissing the resistance of an downwards channel and it may or may not break out of the channel ( coincide with 0.5 fib. If it does then buying it at breakout will likely lead to the top of the falling wedge with another breakout opportunity. If not, then I think it will fall down further into the support of the channel, which coincides within the area of the green box and the golden pocket. Based on how the RSI and william r looks, if it falls down there its highly likely to provide and additional bullish divergence, just making it the odds into our favor. Even if we buy it at 10 and it remains in the channel we could easily place a stop loss for a profit of around 6-7%
