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Danone, Quick Trade or Long-term Buy. Both work here.EURONEXT:BN is showing signs that it has already bottomed out and on its way up. We have a relatively safe trade here. RSI divergence suggests a reversal of trend. It suggests that the low of 29 October 2020 at €46 is the lowest Danone will reach in the short- to mid-term (few months). An ascending triangle is showing upward momentum. This suggests a target of €60. At €60, we see strong resistance that has contributed to major reversals in the past. So that's a line to watch. I suspect a reversal at this line back to the top of the triangle. Just above the €60 line is the 50% Fibonacci level from the recent swing. Crossing this 50% Fib indicates a stronger probability of returning to the swing's top rather than its bottom. If the resistance at €60 is crossed, then it's a very encouraging sign of the bullish momentum and we set our next target at the resistance above at €65. The trade should go like this: You should go long as soon as the triangle breaks upwards, and set a stop loss at either €51.50 or €50.50 depending on your risk appetite. If the first target of €60 is reached, then we raise our stop loss to the top of the triangle or slightly below it, perhaps at €53.50 Once we cross the resistance at €60 by a full daily green candle above it, we raise our stop loss to that level. Cheers.
EURONEXT:BNLong
by TechNerdOmar
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