Technical analysis: Week starting 26th Sep25 Sep 2022 18:24
***************No great discovery was ever made without a bold guess! Issaac Newton***************
I will try to guess what will happen this coming week based on the charts. I think the chance of me being right is >80%
I want to keep this very simple. I’ll only cover what I feel is the best way to determine the price action for the coming week.
1) Weekly charts: - We have inside weeks. Week starting 5th September, we had a weekly candle from low to high of 11p, Week starting 12th September, we had a weekly candle from high to low 4p, week starting 20th September, we had a candle from high to low of only 2p.
Week 1= 11p, Week 2= 4p, Week 3= 2p.
Pressure is building up. The price action is getting compressed/squeezed. It’s going to blow BIG this week!
2) We have a major “descending trend line”. This descending trend line started on 19th October 2021. The price action hits the trend line on FOUR occasions, 19th October 2021, 19 Dec 2021, 31st March 2022, and recently on 9th Sept 2022. Please check for yourself on any time frame. Daily, 4 hours, 60 mins. We break and close above 20p. Game on!!!
Again, the price action is getting compressed. This is going to cause a major melt up. My target here is >50p before Xmas/January 2023. This is based on past price movement VAL moves very fast. < 3 months!
3) In the last three weeks we have developed a “falling wedge pattern” below the major descending trend line after hitting it on 9th September. We have been balancing supply and demand from 21p to 16p. We have done enough business in this balance area so we can now move up towards the next balance area. Could the falling wedge be forming a handle on the Cup? “Cup and Handle?” again this pattern will complete this week. Big week coming!
I can explain other indicators such as RSI, Stochastic, MACD, Bolling Bands, Moving averages, etc. I have checked each one of these and they are all looking bullish on daily chart. We are above 50 dma, sitting on 100 dma and 200 dma is at 23p (above 200 dma will confirm change in long term trend). We break the upper descending trend line then expect "GOLDEN CROSS" by end of next month. Look at the history of Golden Cross on VAL charts! Above 200 dma and above the major descending trend line will mean there is a transformational change happening in the company.
In conclusion, this is a big week for Valirx. There is a saying among Technical Analyst that “news first shows up in the charts”. I will put this to test this week. From the charts I see a bullish pattern forming for last three weeks below a major descending trend line. I expect the price action to break this descending trend line and move to the next balance area.
You all know where I stand going into next week. Lets see how this plays out! Always DYOR.
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