saudi_buffett

ATER support level and potential reversal

Long
NASDAQ:ATER   Aterian, Inc
Summary about the Aterian Inc - ATER (previously known as MWK ):
is a consumer product platform, experts at scaling brands growing more efficient by creating consumer products that respond to needs expressed by shoppers, using data and machine learning to understand the customer journey.
Today, our they have more than 2,000 products, supported by AIMEE™, their Commerce Operating System, and over 220 employees across the globe.


Technical analysis Summary:
  • ATER downtrend (meltdown) started in Feb 17 and continued for almost 130 trading sessions, where the company prices dropped over 90% during the period.
  • The total volumes during this prolonged period were over 155M shares.
  • On August 23, the company started a reversal after scoring what we know now to be the bottom (future might show otherwise); and following that, a positive uptrend started forming.
  • During recent bull run, which took 15 trading sessions, the share prices have grown over 440% with volumes exceeding 800M shares.
  • That run was faced by a correction that led to the company hitting 9.2, which this post is built on as a potential reversal for the assumption of a continued bull run.

TA Details:
As can be seen from the chart, ATER managed to break the lengthy major downtrend after hitting the bottom at 3.11. This was followed by a bull run combined with huge volumes, which indicates major entry at such levels, strengthening the view and position of the bottom.
This run was strong enough to break 13.94, as a major point part of the overall correction since Feb 17, however that didn’t last for long. After hitting 19.1, price swings and huge volumes, indicating a heated competition between buyers and sellers for control of ATER pricing.
Looking at the retracement from 19.1 to 9.14, we can see the share price playing within the range and volumes are massively dropping with major price discounts. Thus far within 12 trading sessions volumes are around 900M which is mainly driven by fierce daily trading.
I see the range between 9.95 – 9.1 as a potential reversal range with three that was tested thus far on four different sessions and managed to protect the downsize, specifically with current low volumes on daily sessions.
Breaking 9.0 with volumes would indicate the best next support level would be around 7.0-6.7; should that happen on a quick note and followed by massive reversal, I would say this is heading towards testing the local downtrend (dotted great line).

Disclaimer:
TA is not meant to be used alone for making investments decisions, and this is not financial advice. Personally, I'm invested in ATER for a long term potential before the events of this analysis occur. Don't trust, validate and make sure you control your money decisions, not some strangers on the internet.