TDOC - Teladoc bottom fishingHello. This chart is strictly a Technical Analysis of Teladoc (TDOC).
I think currently we are in a point in TDOC's price action where we've reached a fundamental SUPPORT area if you look back to 2016. This could potentially be opportune BUY ZONE.
TA is all about probability. The probability we go down is always there, just in this scenario i believe the probability of downside is less compared to the upside.
Though i want some short term downside for TDOC, as i believe that would be the necessary catalyst to help shift trend to upside. Price will eventually rally up, especially if we are in a bull market currently. Which i believe we are in. Ill go into details on why i want it and believe this.
NOTE: This is on the WEEKLY timeframe, so we are looking into a more macro scenario than if we were to look at DAILY timeframe.
LAST WEEk -> We printed a candle that has a large upper wick, indicating SELLING pressure.
We are also resting right on top of a major support level at around $23, indicated by green horizontal like.
It wouldnt be bad for price to drop below and touch the lower 2 green lines, the sloping one and horizontal one. This would be a catalyst due to price action then, starting to confirm what is known as a BULLISH DIVERGENCE.
Which is a pattern or concept where PRICE ACTION forms LOWER LOWS, as INDICATORS create HIGHER LOWERS -> Seen by the white sloping line drawn in the RSI and MACD. And the green sloping line in PRICE ACTION indicates the lower lows.
*Many trades ive recently taken have followed similar patterns, ill link 1 chart to compare this to BELOW* Its for stock LMND. Heres also a SNAP SHOT.
NOTICE the horizontal white line on RSI -> this is what helps me guage at when this move and UPSIDE can start or hit. If RSI breaks out above this line, we can start to see BULLISH DIVERGENCE playout. Easily i can see TDOC hitting around the $40.00 level.
Going back to CURRENT price action. I believe we go down and test the lower green lines, because of all this RESISTANCE that we are facing.
NOTICE:
#PURPLE SLOPING RESISTANCE LINE -> This is MAJOR MAJOR resistance, created since Feb 2021. We just tested it for the 3rd time, last week. (Note: atleast 3 touches are required to weaken lines, more price touches lines -> the weaker they get.)
# We also got some short term WHITE SLOPING RESISTANCE LINES. Helping to push price down
# We also got the 21 EMA (YELLOW Moving average)
******Note, all these are meeting together to act as RESISTANCE. When theres so many converging, like this -> It gets a little hard or takes time to break through to upside.
***ALso i think the PURPLE line is MOST IMPORTANT. This would help reverse trend in a major macro way.
SO KEEP OBSERVING.
Lastly, note the ADX & DI -> This is a momentum indicator. When RED line is over Green line, it indicates BEARISH Price action, as you can see by the downtrend. Currently there is some green overlapping occuring. We have to keep observing to see how this progresses. But ideally, we'd like to see Green shoot up to above 20 level, just like the red line did in white box.
CONCLUSION: I believe in the short term, we could have some downside price action coming. But sometimes, downside action could have positive ramifications. In this case, further strengthening the BULLISH DIVERGENCE forming in the charts. Indicators and current support area, indicate seller exhausting. Probabilities in my opinion point to price moving up than down. Hitting either one of the lower green support lines, could be areas where positions can be taken with stop losses set below.
DISCLAIMER: This is by NO MEANS, Financial advice. I am not a financial advisor, im just a TA nerd and post these for educational purpose. Always follow your own due diligence when trading/investing. Always focus most of your energy on risk management strategies.
If you like this content, please do BOOST, FOLLOW and do COMMENT, i would like others opinions on what your seeing, whether TA or FA. Thank you.
