6002

Is a Long-Term Reversal Finally Taking Shape? 🇸🇦

The stock is currently trading below its IPO (inception) price, reflecting the prolonged bearish sentiment that has dominated its price action. However, beneath the surface, the weekly chart is beginning to show early signs of accumulation and a potential structural reversal.

For long-term investors, this is a stock worth monitoring—not rushing into.

🔍 Technical Outlook

Although the broader trend has yet to confirm a breakout, several technical developments suggest that sellers may be losing control.

✅ Lower Low Bullish Divergence indicates weakening downside momentum.
✅ Price has rebounded from an area resembling a double bottom, a pattern often associated with medium-to-long-term trend reversals.
✅ The weekly structure is gradually improving, keeping the bullish scenario intact.

These signals are encouraging—but confirmation remains essential.

🎯 The Ideal Entry Strategy

As technical analysts, our objective is not to catch the exact bottom—it's to maximize probability while minimizing risk.

Rather than buying purely because the stock looks "cheap," I'd prefer to wait for:

📌 A confirmed breakout above the long-term descending trendline.
📌 Strong bullish weekly candles closing above the breakout level.
📌 Weekly RSI moving above the 60 level, signaling improving momentum and institutional buying strength.

When these conditions align, the probability of a sustained trend reversal increases significantly.

📊 Why Patience Matters

Many stocks appear attractive near multi-year lows, but not all of them reverse.

Waiting for price confirmation, momentum confirmation, and trend confirmation helps reduce downside risk and improves the quality of every trade.

Sometimes the first 10–15% of a move is worth sacrificing if it means entering a higher-probability trend with a healthier risk-to-reward profile.

📈 My View

The weekly chart is becoming increasingly interesting, but the trend has not fully confirmed yet.

👀 Watchlist Candidate: Yes.
🚀 Aggressive Entry: Only after a confirmed trendline breakout.
📊 Momentum Confirmation: Weekly RSI above 60 with strong bullish candles.
🛡️ Priority: Preserve capital first—profits follow disciplined execution.

Remember: The best trades aren't the ones bought at the absolute bottom—they're the ones confirmed by the market.

Do you prefer anticipating reversals, or do you wait for confirmation before committing capital? Share your strategy below! 👇


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