Finolex could not sustain the breakout, whats next?

11월 12일

Failed breakout means buyers trapped.
It tried to bounce back but failed again.
The stock may soon touch 245 levels.

Observations from the Chart:
* Downward Trend: The overall trend of the stock appears to be downward, as indicated by the descending channel formation.
* Failed Breakout: The stock attempted to break above the resistance level but failed, leading to a bearish candle. This suggests a lack of buying pressure and a potential continuation of the downtrend.
* EMA Crossovers: The 10-day EMA has crossed below the 20-day EMA, which is another bearish signal. This indicates that short-term momentum is weaker than the long-term trend.
Potential Scenarios:
* Continuation of Downtrend: If the selling pressure persists, the stock may continue its downward movement and test the lower boundary of the channel or even the 245 level as mentioned.
* Consolidation: There's a possibility that the stock may consolidate within the channel for some time before making a decisive move. This consolidation phase could be characterized by sideways price action or small fluctuations within the channel.
* Potential Reversal: While unlikely given the current technical indicators, a reversal could occur if strong buying pressure emerges and the stock breaks above the resistance level. However, this scenario is less probable at the moment.

Recommendations:
Given the current technical outlook, it's advisable to adopt a cautious approach towards this stock. Consider the following:
* Avoid Buying: It's not recommended to initiate new long positions in this stock at the moment.
* Existing Positions: If you already hold a long position, consider tightening your stop-loss to protect your capital.
* Short-Term Traders: Short-term traders could consider short-selling opportunities if the stock breaks below the lower channel boundary or the 245 level. However, this should be done with proper risk management.
Disclaimer:
This analysis is based on the provided chart and technical indicators. It's important to conduct thorough research and consider additional factors before making any investment decisions. Technical analysis is not foolproof, and market conditions can change rapidly. Always consult with a financial advisor to get personalized advice.