DBSTOCKBRO
has broken out this week from a long term zone. The move has occurred after a nice rounding bottom that took nearly 8 years. Remember that the longer the pattern formation, larger the move.
Now if we go by classic TA, rounding bottom low from breakout zone is a 550% move (38 points in terms of number). If we go by % then there is a huge upside potential in the stock. Even if we go by just the absolute move, it would still be a healthy 70%. Break of this week's high should be a good entry point if you're an aggressive trader.
On the downside, if there is a re-test then it might go back to 45 zone before it continues on the upside. If you're a conservative trader then you can wait for the pullback (though it may never happen).
Worst case, the breakout might fail completely hence it would be prudent to trail this using a tight average in a daily timeframe, e.g. 9DEMA/10DMA.
Now if we go by classic TA, rounding bottom low from breakout zone is a 550% move (38 points in terms of number). If we go by % then there is a huge upside potential in the stock. Even if we go by just the absolute move, it would still be a healthy 70%. Break of this week's high should be a good entry point if you're an aggressive trader.
On the downside, if there is a re-test then it might go back to 45 zone before it continues on the upside. If you're a conservative trader then you can wait for the pullback (though it may never happen).
Worst case, the breakout might fail completely hence it would be prudent to trail this using a tight average in a daily timeframe, e.g. 9DEMA/10DMA.
Be a Better Trader!
Disclaimer: Do your own due diligence for buy/sell decisions.
Disclaimer: Do your own due diligence for buy/sell decisions.
