The article discusses the current price trends of two securities, Cardano (ADA) and Jio Financial Services (JIOFIN), which have both been experiencing bearish price action in recent weeks. However, the article suggests that they may be poised to reverse their trajectory, presenting excellent trading opportunities for investors.
Cardano (ADA) has been consolidating near the 50-week EMA, which has absorbed some of the recent dump phase. With increasing buying volume and holding of the key technical support, the price of Cardano is likely to rise, with a potential target of $0.89 by mid-March 2025. A weekly close above $0.80 could confirm the start of a new bull phase, while a return below $0.72 could indicate a structural weakness.
Jio Financial Services (JIOFIN), on the other hand, has been experiencing a bear phase, down 32% from December 2024 levels. Despite this, technical analysis suggests that the chart bottom may have already been reached, and a bull phase could commence. The weekly RSI indicates an oversold territory, making it a speculative buying opportunity. However, analysts like Jay Thakkar from ICICI Securities have warned investors to exercise caution, urging them to wait for a significant bottoming play before entering a position.
The article emphasizes the importance of timing in trading, highlighting that an early entry into a position without clear confirmation from technical signals can expose investors to unnecessary risks. Experienced traders wait for a convergence of multiple factors, including trading volume, moving averages, and support and resistance levels, to validate an opportunity. For now, while there are signs of a possible reversal, investors should wait for further confirmation before venturing a forecast.