Cogent Ltd – Daily timeframe (Update from 22 March 2017)
*Entry Price: 0.810 Stop loss : 0.725 Take profit : 0.900
Current Sentiment: Bullish
Support 1: 0.730 Resistance 1: 0.835
Support 2: 0.705 Resistance 2: 0.880
The uptrend moved along as expected after the last update but fell short of testing the 0.880 resistance area as the 0.860 area kept a lid on price.
Since testing the 0.860 area on 10/04/17, price entered into a prolonged period of correction while keeping the uptrend intact as the confluence of 38.2% Fibonacci retracement level, 200 day moving average and 0.730 support area halted the bearish momentum. As a result, price succeeded in reversing the correction shown by the increasing volume bullish break above the downtrend line on 21/07/17.
Moreover, the bullish rejection off the 0.860 support area is forming a bullish double bottom pattern.
Expect the long term uptrend to resume next for price to test the 0.835 resistance area followed by 0.880.
Note: Our current fundamental view on Cogent is a Buy rating with a fair value of $1.18.
Join our telegram channel on technical analysis for trends, entry and exit prices over Stocks, ETFs, and Indices!Featuring regular TA posts and requests to analyse specific stocks