Pricer B was on a strong stride upward, ready to establish itself above 25 SEK and then what happened? They released their financial report with some numbers that the market reacted negatively too. But Pricer B is fundamentally a strong company which was inevitably affected by COVID-19. The market saw the panic selling as a buying opportunity and the stock is once again on a stride to defeat 25 SEK.
Lesson here is: even if an upward trend line is broken by bad news, you have to take fundamentals into consideration. Do you still believe in the company? Then buy more in the dip. If you only trade on technical analysis, then you might consider selling, but even in this case it's important to look at more than just trend lines. For example, Pricer B was quickly oversold and bounced right back to the MA50 line, which acted as a support for an additional impulse up to where we started before the financial report.
Lesson here is: even if an upward trend line is broken by bad news, you have to take fundamentals into consideration. Do you still believe in the company? Then buy more in the dip. If you only trade on technical analysis, then you might consider selling, but even in this case it's important to look at more than just trend lines. For example, Pricer B was quickly oversold and bounced right back to the MA50 line, which acted as a support for an additional impulse up to where we started before the financial report.