Part B - continued: $ETWO - technically
It can be seen that the stock peaked in May, and from there created resistance at $12.7.
After the rise, the stock corrects and reaches Fibonacci 61.8 and corrects back.
The stock is nearing the end of its upward move - it needs to pass the resistance test.
If it breaks out with high volume, entry will be possible after the breakout - the candle needs to close above the black line.
It is possible that the stock will touch the resistance point and drop again for a small correction - an option to buy at a better price.
The next resistance line is marked (the upper one in green) and the first target the stock needs to reach.
It can be seen that the MACD indicator is turning positive in recent trading days.
In our assessment: Option 1 - the stock will break the resistance level and this will turn into support - the entry possibility will be after the breakout.
Option 2 - the stock will touch the resistance level (currently it is at the resistance level) and from there it will realize profits down to the area of a diagonal support line (in red) - and from there it will start an upward move.
In our assessment, Option 2 is more likely.
Nothing stated herein is a recommendation! Anyone using the information does so at their own personal risk only.