Technical outlook – Approaching this share from a technical perspective, it is assessed that bullish divergence is evident from the daily timeframe.
Traders can take advantage of divergence by using a variety of trend-based strategies.
Divergence is probably one of my favourite trading signals because they are dynamic and most often offer a reliable, high-quality trading signal reversal when combined with other trading tools and concepts.
In technical analysis, divergence can be a significant warning signal that a bullish or bearish trend is coming near to an end. Divergence appears when a technical indicator (oscillator) begins to establish a trend that disagrees with the actual price movement.
These “disagreements” are strong signals and somewhat useful for the trader/investor.
Bullish divergence occurs when the price of an asset makes a new low while the indicator starts to climb. Bearish divergence happens when the price of the asset reaches a new high, but the indicator fails to do the same and instead closes lower than the previous high.
Combining the above assessment, Firstwave Cloud Technology Limited (FCT) is expected to move away from the near-term base at $0.10-12 and stage a ‘bull-run’ towards the region of $0.26. Reassess from there.
Company Overview – Firstwave Cloud Technology Limited (FCT) operates in the cloud security services market and is a provider of managed SaaS security solution. FirstWave generates ‘managed security services’ delivered as Cloud based offerings. These include Cloud Secure Email Gateway (SEG) Cloud Secure WEB gateway (SWG) and Cloud Secure Next-Generation Firewalls (SNGFW). Former Names: Tellus Resources Ltd (TLU), 18/02/2015; Crestal Petroleum Limited (CRX), 09/05/2016.