Just here to offer a higher time frame perspective, which is often overlooked, for this trendy stock.
Just note as, despite the strong rally it has been subject to month to date, it is and has been on a steady downtrend since the beginning 2021. The downward sloping trendline has been thoroughly respected, just like it is working as resistance to the current candle.
Also important for the bulls out there, note please that the longer term momentum is no longer controlled by the bulls. As a matter of fact, the size of the bearish candles throughout this downtrend has been massive (to be fair volume for these candles has been low, but price is price).
For the bears, bear in mind that stage analysis is suggesting that what could be following is longer term uptrend. This stock has been in a longer term downtrend since the beginning of 2014. Note how an RSI bullish diversion made way for a trend reversal starting in 2020. Couldn't we argue that we've been in an accumulation phase from a longer term perspective, since then? Since then, there has been something unprecedented stepping into this market, a lot of above average sized bullish candles, to sustain this idea.
Having this said ... What I like the most about this chart iis the fact that the price is trading at an inflection point.
It trades and closes below the current demand area, then we have a bearish trigger. In such a scenario, the bulls which have been giving support to this market would no longer be there or would be seeing an ugly red color in their PnL, very keen to sell.
Conversely, it trades and closes above the yellow trendline and we have a bullish trigger. In such a scenario the trendline that is shaping our downtrend would be broken. Bulls would be stepping in. Immediate long term uptrend? Probably not, but a good sign you can trust the support level defined and also that there are good odds you could be rewarded with a target profit at the first overhead supply area.
Just note as, despite the strong rally it has been subject to month to date, it is and has been on a steady downtrend since the beginning 2021. The downward sloping trendline has been thoroughly respected, just like it is working as resistance to the current candle.
Also important for the bulls out there, note please that the longer term momentum is no longer controlled by the bulls. As a matter of fact, the size of the bearish candles throughout this downtrend has been massive (to be fair volume for these candles has been low, but price is price).
For the bears, bear in mind that stage analysis is suggesting that what could be following is longer term uptrend. This stock has been in a longer term downtrend since the beginning of 2014. Note how an RSI bullish diversion made way for a trend reversal starting in 2020. Couldn't we argue that we've been in an accumulation phase from a longer term perspective, since then? Since then, there has been something unprecedented stepping into this market, a lot of above average sized bullish candles, to sustain this idea.
Having this said ... What I like the most about this chart iis the fact that the price is trading at an inflection point.
It trades and closes below the current demand area, then we have a bearish trigger. In such a scenario, the bulls which have been giving support to this market would no longer be there or would be seeing an ugly red color in their PnL, very keen to sell.
Conversely, it trades and closes above the yellow trendline and we have a bullish trigger. In such a scenario the trendline that is shaping our downtrend would be broken. Bulls would be stepping in. Immediate long term uptrend? Probably not, but a good sign you can trust the support level defined and also that there are good odds you could be rewarded with a target profit at the first overhead supply area.