The stock is under the moving averages on the 12-hour timeframe.
Price continues to move under MA50 and MA200. At the same time, the 50-day moving average is under the 200-day moving average, which indicates a continuing downtrend.
The Relative Strength Indicator ( RSI ) on the 12-hour timeframe is in the bearish zone (at the time of publication its value is 42).
According to Dow theory locally there is an uptrend. Rising lows and rising highs (HH, HL). At the same time, we see that a descending high (LH) has been formed.
The short scenario is additionally based on the fact that the upward structure may be broken locally, which would mean the probability of a decline primarily to the previous low, where the current support zone of $5-5.2 is located. If this support is broken, the trend can continue and the next targets will be the historical levels of $4.6.
Locally the price is at the level of Point of Control. Breakdown of this level also means the probability of decrease in the support zone area.
The cumulative delta for the specified period (see the attached image) shows the continuing market sales.
https:// postimg. cc /CnCsRBcS (remove spaces).
Accordingly, based on the above described, it is possible to build two short scenarios:
1. Breakdown of the level of POC and reduction to support. The ratio of risk to profit is 1 to 2.25.
2. Breakdown of the support and continuation of the decrease down to $4.6 (for starters). The risk/profit ratio is 1 to 7.75.
This scenario is possible if the bearish sentiment and the corresponding market conditions persist.
In order for us to consider bullish scenarios, we should see HH and HL, a breakout of local resistances to begin with. And also a price exit above the 50-day moving average. And also it is necessary to see the reversal candlestick pattern on the timeframes of 12 hours and 1 day. It has not happened yet.
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Price continues to move under MA50 and MA200. At the same time, the 50-day moving average is under the 200-day moving average, which indicates a continuing downtrend.
The Relative Strength Indicator ( RSI ) on the 12-hour timeframe is in the bearish zone (at the time of publication its value is 42).
According to Dow theory locally there is an uptrend. Rising lows and rising highs (HH, HL). At the same time, we see that a descending high (LH) has been formed.
The short scenario is additionally based on the fact that the upward structure may be broken locally, which would mean the probability of a decline primarily to the previous low, where the current support zone of $5-5.2 is located. If this support is broken, the trend can continue and the next targets will be the historical levels of $4.6.
Locally the price is at the level of Point of Control. Breakdown of this level also means the probability of decrease in the support zone area.
The cumulative delta for the specified period (see the attached image) shows the continuing market sales.
https:// postimg. cc /CnCsRBcS (remove spaces).
Accordingly, based on the above described, it is possible to build two short scenarios:
1. Breakdown of the level of POC and reduction to support. The ratio of risk to profit is 1 to 2.25.
2. Breakdown of the support and continuation of the decrease down to $4.6 (for starters). The risk/profit ratio is 1 to 7.75.
This scenario is possible if the bearish sentiment and the corresponding market conditions persist.
In order for us to consider bullish scenarios, we should see HH and HL, a breakout of local resistances to begin with. And also a price exit above the 50-day moving average. And also it is necessary to see the reversal candlestick pattern on the timeframes of 12 hours and 1 day. It has not happened yet.
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10% cashback on first payment!
Link in profile
