$JSETCP - Transaction Capital: Putting The Bear Into Perspective
Transaction Capital had a good run after the covid-19 crash, rallying from 896 to an all time high of 5250 in just over two years.
The share and most importantly, the business model, has come under massive scrutiny over the last two months.
First was the trading statement released 13.03.2023 which led to a big gap down and continued sell-off and today interim results for 2023 were released which have triggered a further sell-off.
I highly recommend one reads these fundamental releases before trading or investing in this stock.
Taking a look at the chart, long before the trading statement, the share was already in a bear trend.
The first sell-off for wave (A) was a simple impulse followed by a three wave correction for wave (B).
The shallow and short-term nature of this correction was early evidence that the bears were still in control.
Wave (C) is unfolding as a more complex five wave impulse and has the following key observations.
1-The trading statement came out in the early stages of wave 3 and created a much more accelerated sell-off.
2-Wave 5 has been accelerated by the release of the interim results today.
It is hard to forecast how much lower wave 5 can go but seeing that the stock is trading in wave 5 of (C), it is not prudent to short at this late stage.
As much as the fundamentals may not look good, a technical bounce is possible in the short-term to mark the completion of wave 5.
I will sit on my hands and watch price action in the meantime.
The share and most importantly, the business model, has come under massive scrutiny over the last two months.
First was the trading statement released 13.03.2023 which led to a big gap down and continued sell-off and today interim results for 2023 were released which have triggered a further sell-off.
I highly recommend one reads these fundamental releases before trading or investing in this stock.
Taking a look at the chart, long before the trading statement, the share was already in a bear trend.
The first sell-off for wave (A) was a simple impulse followed by a three wave correction for wave (B).
The shallow and short-term nature of this correction was early evidence that the bears were still in control.
Wave (C) is unfolding as a more complex five wave impulse and has the following key observations.
1-The trading statement came out in the early stages of wave 3 and created a much more accelerated sell-off.
2-Wave 5 has been accelerated by the release of the interim results today.
It is hard to forecast how much lower wave 5 can go but seeing that the stock is trading in wave 5 of (C), it is not prudent to short at this late stage.
As much as the fundamentals may not look good, a technical bounce is possible in the short-term to mark the completion of wave 5.
I will sit on my hands and watch price action in the meantime.
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