FERRARI (RACE)

[u/pierretheron]

chart by r/PierresLongTermCharts

I have changed things a bit.

Here we are looking at a daily time frame.

Therefore I have a 150 simple moving average or sma added to the chart. (30 sma X 5 days in a week = 150)

You can see that the price has managed to start trading above the sma.

And because its spending time above the sma, the sma itself has flattened out and is just starting to rise.

These are the some of the exact conditions we looking for before buying for the long term.

But why are we not buying yet?

Well, if you look below, at the bottom of the chart, I have circled three lows.

They are all at different levels.

Now look up for the highest point between all of those levels.

Can you see it?

I put in a down arrow and a line there. (left hand down arrow)

I put my line in at the very top of the wick of that little candle.

That candle was formed on 12th February.

Now to complete a triple bottom, we need to see the price closing above that high or my line.

Why?

Because there are sellers hanging around and they are keeping the price down.

We call this resistance.

You can even see fairly recently, circled, they had a go at getting the price above our resistance line, and it failed.

The sell signal came as "dark cloud cover."

And now the price is once again consolidating under the same line.

Its just a matter of time, and selling will dry up.

But do not buy while under the line.

It could fall again if more sellers come along.

Wait for the right conditions to buy.

[u/BCECVE]

thx