Qiwi PLC (NASDAQ: QIWI)

QIWI plc, together with its subsidiaries, operates electronic online payment systems primarily in the Russian Federation, Kazakhstan, Moldova, Belarus, Romania, the United States, and the United Arab Emirates. It provides payment services through operating approximately 127,000 kiosks and 42,000 terminals in its payment processing platform. The company also offers Visa Qiwi Wallet, an online and mobile payment processing, and money transfer system that allows accountholders to pay for the products and services of merchants, as well as to perform peer-to-peer money transfers through a virtual wallet in the online and mobile environment. In addition, it is involved in licensing software and trademarks. The company is based in Moscow, the Russian Federation.

Take a look at the 1-year chart of QIWI (Nasdaq: QIWI) below with my added notations:

1-year chart of QIWI (Nasdaq: QIWI)

QIWI has formed a relatively clear down-channel chart pattern over the last (4) months. A channel is simply formed through the combination of a trend line support that runs parallel to a trend line resistance. When it comes to channels, remember that any (3) points can start the channel, but a 4th point or more confirms it. You can see that QIWI has several points of channel resistance (blue) and support (red).

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The Tale of the Tape: QIWI has formed a common pattern known as a channel, in this case a down channel. A long trade could be entered on a pullback down to the channel support (approaching $30), or on a break through the channel resistance, which is currently getting close to $38.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT

Follow me on Twitter: @cmtstockcoach