Rangebound price action behaviour summarises the current intermediate term trend of Telstra which has been in effect since early 2018.With clear boundaries of the congestion one may utilise the edges of congestion zone for a long or short position in either direction on a successful retest.These trades,if taken, should be short term orientated with protective stops.
Major trend here is down and with medium term trend being FLAT/RANGEBOUNG/CONGESTED. What on earth is going on in this congestion if the view is LONG TERM ? Accumulation or RE-DISTRIBUTION ? My view is a long term accumulation which may take quite a sometime to be completed.Upper resistance level of $4.00 is the zone to watch for a new major bull run if an upside eruption is to happen.2018 CLIMAX LOW marks the support level to watch on the downside.
What is happening in the short term ( if individual bars are examined) ?
Another CLIMAX in March and what I see as a HOOK REVERSAL in April.This is a successful retest of the 2018 low.What to expect now ? Retest of the $4.00 zone with no ifs or buts.Whether or not what happens is another thing off course.
Disclosure : Telstra is held.
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