Trade setup: Price remains in an Uptrend. It got rejected at $2.50 resistance and is consolidating in a Falling Wedge pattern. We wait for a breakout. In case of a bullish breakout in the direction of existing Uptrend, price could revisit $2.50. Also, notice that price is approaching a robust support zone around $1.55 and 200-day moving average.
Pattern: Falling Wedge. It usually forms after a downtrend and suggests a potential bullish reversal in the original downtrend. When price breaks the upper trend line the price is expected to trend higher. Emerging patterns (before a breakout occurs) can be traded by swing traders between the convergence lines; however, most traders should wait for a completed pattern with a breakout and then place a BUY order.
Trend: Downtrend on Short-Term basis and Uptrend on Medium- and Long-Term basis.
Momentum is Bearish (MACD Line is below MACD Signal Line, and RSI is below 45).
Support and Resistance: Nearest Support Zone is $1.85, which it broke, then $1.55. The nearest Resistance Zone is $2.50, then $3.00.
Pattern: Falling Wedge. It usually forms after a downtrend and suggests a potential bullish reversal in the original downtrend. When price breaks the upper trend line the price is expected to trend higher. Emerging patterns (before a breakout occurs) can be traded by swing traders between the convergence lines; however, most traders should wait for a completed pattern with a breakout and then place a BUY order.
Trend: Downtrend on Short-Term basis and Uptrend on Medium- and Long-Term basis.
Momentum is Bearish (MACD Line is below MACD Signal Line, and RSI is below 45).
Support and Resistance: Nearest Support Zone is $1.85, which it broke, then $1.55. The nearest Resistance Zone is $2.50, then $3.00.