By breaking the previous lower low to the downside, the stock could fill the long wick and reach the 85.5 level. If those levels are also broken, it may try to find support around the Fibonacci 1.618 level and the 200-day moving average of 69.5 levels while potentially creating a Head and Shoulders pattern.
Without the creation of a higher high, the stock may carry risk for traders who are uncertain where to set their stop-loss.
Without the creation of a higher high, the stock may carry risk for traders who are uncertain where to set their stop-loss.
Comment:
The stock has filled the wick as expected. Now need to see if it will create a head and shoulder pattern or not.
Comment:
01-03-2023
The stock has found support from the descending trendline, which is a positive sign. However, to confirm a bullish trend reversal, the stock needs to break out above the previous lower high of 98.9 and establish a new higher high or create a lower high and higher low formation. Until this occurs, the stock remains in a downtrend, and should exercise caution.
The stock has found support from the descending trendline, which is a positive sign. However, to confirm a bullish trend reversal, the stock needs to break out above the previous lower high of 98.9 and establish a new higher high or create a lower high and higher low formation. Until this occurs, the stock remains in a downtrend, and should exercise caution.