HL asia – Ascending Triangle forming

Trend: Uptrend (Ascending triangle), 20ma slightly up, Macd slightly above 0

Support: 3.44 (20ma, 50ma & 200ma), 3.26

Resistance: 3.63, 3.98 (100ma)

Observations
Candlestick – Small black candle.
Histogram – 3Rs. No Bearish divergence is seen.
RSI – Around 80%, Overbought. No Bearish divergence is seen.
Stochastic –Bearish crossover is already seen.
Bollinger Band – Closer to upper band. Squeezing.

Conclusion:
HL asia used to be in the limelight before its correction happened. But has it bottom out from its previous downside and start to perform as well as it has done before?
HL asia is currently showing signs of uptrend but lack of a higher high to confirm its uptrend. Looking closely, one would see a formation of an ascending triangle. The resistance of this ascending triangle stands at 3.63 level. If HL asia manages to break this resistance level, it would mean higher high will be formed and uptrend will be confirmed.
Looking at the indicators currently, there are no signs of a possible breakout this few days. Hence, a retracement is more likely to happen. Hence, the retracement could approach the moving averages level of 3.44 level. This retracement will still be in the triangle’s range and might break the resistance level after testing 3.44 level.
But if 3.44 fails to hold, it could mean that the formation fail and the trend would turn into sideway, which it likely support level would be 3.26 level.
In conclusion, due to the formation of ascending triangle, it is important to wait for the resistance level of 3.63 to break before entry for the long side.

What to watch out for this week:
1) Breaking of 3.63.
2) Retracement to support of 3.44.

Trading strategy to adapt right now:
- Long when there is a breakout of 3.63 level with high volume.
- Long when bullish signal is formed at 3.44 level.

*Disclaimer applies