Interesting one here - GRAB
Long deep downtrend ended in 2022. Then sideways darvas box. I've identified a completed converging triangle within the box and think this has a good chance to jump out of it late this year and possibly into next.
RSI was at its very weakest at what I have labeled as the "E" wave which is the final wave of the triangle. I believe this marks the completion of the larger degree (B) wave, also known as the second leg in a 3-wave correction. In this case, the correction is UP off of the long term low back in 2022. It started with the (A) wave, went sideways into the converging triangle (B) wave, and should now be working on the (C) wave. The standard target for a (C) wave is 100% the length of (A) from the end of (B). You can see the fib levels in gray.
Also of not, that E wave bottom marked the lowest point on the MFI chart which is the money flow index. That's pretty significant that the weakest reading of money flowing OUT was at a higher low within a darvas box, and not the bottom back in 2022. This to me screams "exhaustion" of trend. Everyone who wanted out is out. That said, at least looking at daily candles, money flow is peaking for now. That doesn't mean a stock will reverse all the way back down. It could just mean it enters a new consolidation. And of course, these high readings in RSI, MACD, and MFI can get embedded for a while if it continues its strength. I do love that MACD broke above it's sideways upper trend dating back to last May.
So I've marked horizontal lines for resistance and support. It's much closer to resistance at $4.05 than support at $2.98. But we're talking about a ~$1 range. This recent move up came with some decent volume, though not yet what I would really want to see to confirm bullish trend. I expect that to come if it breaks the green line.
I can't say if it's going to keep going or give a pullback of some sort. Technicals would logically tell you a pullback is near, but technicals aren't forward looking. If you can stomach a nearly $1 loss, representing a 23% loss at current price, you could buy in here. The minimum target is $5.50. I'll put the max target at $8 which is the 161.8% extension level of (A). When you switch to weekly, it certainly has room to move higher.
This might not be a huge gainer. But if it were to get a 50% correction before breaking above the green line, we'd be talking about a pretty awesome R/R aiming even at the minimum target.
"H-A: In return for the flattery, can you reduce the size of your signature? It's the only part of your posts that don't add value. In its' place, just put "I'm an investing savant, and make no apologies for it", as oldarmy1 would do."
- I Bleed Maroon (distracted easily by signatures)
