One of the dominant factors of a successful trade is confirmation on multiple time frames, and $EWA fits the bill accordingly.
The long-term monthly chart of $EWA below shows the price action has been in a tight range over the past two months. A breakout above the current 3-month high should spark some buying interest and lift $EWA up to the prior highs of 2011 and 2013 (around $28):
Drilling down to the weekly time frame, $EWA has formed a tight, 8-week base above the rising 10-week moving average, with two of those weeks forming bullish reversal candles.
We love to see reversal candles on the weekly chart, especially when they undercut a main moving average and close back above by the end of the week. With both weekly reversal candle lows at $26, $EWA shouldnâ€™t dip much below this level if the pattern is to follow through to the upside within the next few weeks:
The daily chart of $EWA shows a recent bounce off the 50-day MA on higher volume, after a lighter volume pullback. Note that the 20-day EMA is above the 50-day MA, and both are above the 200-day MA. The 50 and 200-day MAs are in a clear uptrend, but the 20-day EMA has flattened out, which is normal during the formation of a base.
On the individual stock side, we have listed both $IDTI and $TSLA on today’s watchlist for potential buy entry, which are in addition to the two setups that triggered for buy entry last Friday.
This article is brought to you courtesy of Morpheus Trading, LLC.