Technical analysis-based trade ideas can be classified into two main categories – trend following or mean-reverting.
In other words, there's no reason to guess when momentum is going to turn higher – if it does at all.
However, when a declining stock gets washed out and/or falls to a confluence of support, the risk return ratio can turn favorable.
And with the stock's recent hold above the 130-zone the last few weeks, it could be getting ready for another rally attempt.
BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR.
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