ADSL: Combining Rounding Bottom with ADX
Sep 05, 2024
It is possible to capture massive stock moves using price patterns along with simple indicators like the ADX (Average Directional Index).
We used these 2 indicators on ADSL and captured a massive 22% move in just 4 trading sessions. It's impressive how combining these simple indicators with price patterns can pinpoint momentum stocks for short-term trades, leading to substantial returns.
We published ADSL analysis in "The Financial Waves Short Term Update" on 02nd September 2024 which our subscribers receive pre-market every day. Check out below the detailed research report that we published.
ADSL Daily chart as on 02nd September 2024: (Anticipated)
Wave Analysis as on 02nd September 2024:
ADSL showed sharp rally in the previous session of more than 11% in a single trading day! the stock has formed a rounding bottom pattern. Price has closed above 254 which confirms breakout of the said pattern. On the hourly chart, ADX is suggesting strong momentum can continue in this stock as it is showing readings of 30.74 which is above 25. For now, one should use buy on dips approach to ride the trend.
Key Resistance: 290
Key Support: 250
Strategy: Use dips towards 260-262 as a buying opportunity for a move towards 285-290 levels as long as 250 holds on the downside.
ADSL Daily chart as on 05th September 2024: (Happened)
Happened:
The stock moved as we expected. ADSL has given a breakout of Rounding Bottom with huge volume which was a bullish sign. After a dip, prices moved up as we anticipated and it has achieved our target and moved way above it and made a fresh high of 319.9 levels which is more than 22% in just 4 trading sessions from our mentioned levels.
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