RIOT - Adam and Eve pattern in the making?
RIOT appears to be forming an Adam and Eve pattern (8 months in the making now) with the stock flirting with the 200 day moving average since 30 Jan this year.
What is worth noting was its volume pattern since the start of this year: higher volume up days (accumulation) vs lower volume down days (distributions). A tell tale sign that the stock is probably on investors' radar rather than shortists' at current prices.
While it is tempting to long the stock at current levels, there is still risk that the stock could continue to trade sideways for a (long) while more. I would probably wait for a break above 7.78 (neckline 1) to initiate some long positions. Even so, be mindful of headwinds @ 8.67 (neckline 2) and then @ 10.52 (neckline 3).
However, should the stock be able to clear above 10.52 eventually, then it is a stronger signal that uptrend is underway (volatility not withstanding).
p/s buy the dips is also a good strategy once an uptrend is established.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
What is worth noting was its volume pattern since the start of this year: higher volume up days (accumulation) vs lower volume down days (distributions). A tell tale sign that the stock is probably on investors' radar rather than shortists' at current prices.
While it is tempting to long the stock at current levels, there is still risk that the stock could continue to trade sideways for a (long) while more. I would probably wait for a break above 7.78 (neckline 1) to initiate some long positions. Even so, be mindful of headwinds @ 8.67 (neckline 2) and then @ 10.52 (neckline 3).
However, should the stock be able to clear above 10.52 eventually, then it is a stronger signal that uptrend is underway (volatility not withstanding).
p/s buy the dips is also a good strategy once an uptrend is established.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
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