NEW has pulled back into a very technically significant price range, this range consists of:
-the longer term downtrend line from April 2019 acting as support
-the rising lower trendline of the expanding channel
-the 100% extension target (yellow line $6.82) of the 'A' move down from the recent August 2020 high ($12.39 to A = B to C)
-the 61.8% retracment (blue line $6.97) of the entire move higher from the April 2020 low of $3.62
Other considerations:
My opinion is the current structure of the correction from the August 2020 high is a larger repeat pattern of the May-June downtrend and the current consolidation should lead to an aggressive breakout similar to what the stock did in July which was a +100% gain. I am going to manage risk around the lower blue rising trendline and the orange downtrend line from August.
***Full disclosure I own the stock at $7.38
-the longer term downtrend line from April 2019 acting as support
-the rising lower trendline of the expanding channel
-the 100% extension target (yellow line $6.82) of the 'A' move down from the recent August 2020 high ($12.39 to A = B to C)
-the 61.8% retracment (blue line $6.97) of the entire move higher from the April 2020 low of $3.62
Other considerations:
My opinion is the current structure of the correction from the August 2020 high is a larger repeat pattern of the May-June downtrend and the current consolidation should lead to an aggressive breakout similar to what the stock did in July which was a +100% gain. I am going to manage risk around the lower blue rising trendline and the orange downtrend line from August.
***Full disclosure I own the stock at $7.38