Equinix Inc (US: EQIX) rallied after breaking the ascending triangle based on our report dated 31st August. Heavy selling was observed upon reaching our target price 1 at US$883.80. Despite the strong selling, prices rebounded from the key support zone at US$727.48-US$745.82. Further technicals indicate that the bull run should continue:
- Monday’s bullish candle was seen rebounding from the immediate support zone at US$766.03-US$774.42 and the 78.6% Fibonacci retracement of the range box of US$743.71-US$887.19.
- RSI is shown rebounding from the 40 support line. This action highlights that there is a strong possibility of a mean reversion rebound.
- Prices will need to clear the gap resistance zone at US$810.43-US$823.06 to further solidify the bullish upside.
*Expected timeline of the trade is 15 weeks from the date of report issuance.
