PNV.ASX flag break for possible $2.80 test.

Hello Fellow Trader!

PNV.ASX flag break for possible $2.80 test.

breaking out of flag with strong sell off into close. A hold above $2.50 would be a great opportunity to target $2.80.

PNV.ASX - Polynovo LTD is an Australian-based medical device company that designs, develops and manufactures dermal regeneration solutions using its patented NovoSorb Biodegradable polymer technology.

Key Points:
- Price holding above the 200 EMA
- Price holding above the 50 EMA
- RSI above 50 mid-point
- Flag broken of upside

Key Levels:
Support - $2.50, $2.38, 50 EMA, 200 EMA
Resistance – $2.60, $2.80

Entry Zone:
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – $2.51
Supporting Entry – $2.55

Candle Reversals for entry
- Bullish Hammer
- Bullish Engulfing
- Bullish Piercing

The Risk:
As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.
If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.

IF: Price breaks below 2.38 – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.

Reward / Reward Targets:
Optimal Entry $2.51 – Target 1 $2.80 = 2.2x Reward to Risk
Supporting Entry $2.55 – Target 1 $2.80 = 1.5Reward to Risk