Since March 2021 the price action of SKL is moving in a down channel . After applying the volume profile on the complete price action moving within this channel, we can see the result that the volume profile is showing very less interest of the traders close to the support of this channel and the point of control of the volume profile is above the resistance of this channel and we have very strong interest of the traders even above the resistance. The price action can follow the point of control which can lead to a big break up. There is also a 100 simple moving average resistance at the same level where we have the resistance of down channel .
On the daily time frame chart, the price action of SKL has formed the final leg of bullish Shark . Therefore a reversal move is possible from here.
On the weekly time frame chart, the price action has of SKL has formed a big bullish BAT pattern.
As per the Fibonacci sequence the buy and sell targets for this bullish BAT can be as below:
Buy between: $0.2898 to $0.1684
Sell between: $0.5794 to $1. 01
The maximum extent of potential reversal zone $0.1684 can be used as stop loss. As per the above targets, this trade has a huge profit possibility of up to 499%, and the loss possibility is 42% but at this time it is 22% as the priceline is moving at $0.2240.
Even though the price action is moving in the down-channel for a long time period. But now we are having two harmonic bullish reversal patterns formed. One is on the daily time frame another one is on the weekly time frame. These harmonic moves are signaling to a big break from this down channel
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