While many will be elated on what seems like a "Trend Breakout", it is still early to tell.
Newton law of motion
"An object in motion will remain in motion in the same direction" holds true for stocks as well. A stock in a downtrend will most likely stay in a downtrend.
Even if the breakout is legit, we have a nearby resistance at 6.00. Given that the current price is already at 5.600, there is not much room upwards before supplies start to pour in again.
If the price is unable to break 5.70, a possible lower high could be created.
One of the sins in Technical Analysis is the trader only draws what he wishes to see and is blind to other possibilities.
Verdict: The Risk is not worth chasing this potential "breakout"
Newton law of motion
"An object in motion will remain in motion in the same direction" holds true for stocks as well. A stock in a downtrend will most likely stay in a downtrend.
Even if the breakout is legit, we have a nearby resistance at 6.00. Given that the current price is already at 5.600, there is not much room upwards before supplies start to pour in again.
If the price is unable to break 5.70, a possible lower high could be created.
One of the sins in Technical Analysis is the trader only draws what he wishes to see and is blind to other possibilities.
Verdict: The Risk is not worth chasing this potential "breakout"