InvestEmi

MTLS | Mixed signals everywhere

NASDAQ:MTLS   Materialise NV
MTLS is giving us mixed signals that are proving hard to trade with.

In the longer time frame and on the 4h chart, we can see an evident Regular Bearish divergence. This may explain why MTLS struggled to make ATHs last week despite an outstanding run over the past month or so.
However, the daily chart doesn't confirm this bearish divergence, and the continual Higher Highs are making this theory hard to sustain.

Contrarily in the shorter time frame, we now have a Hidden Bullish divergence forming, which may suggest we have found new support on the previous uptrend resistance.

The two scenarios I will be watching closely over the next week are:

1. Confirmation of the Hidden bullish divergence requires a green day tomorrow;
2. If so, there's potential for a Bearish H&S reversal by the end of the week, back down to its lower support and previous horizontal resistance ~$53.

After such a strong run up I'm ever so slightly inclined to the bear case, but any significant pullback will be no less than a great opportunity to add more.

Any thoughts?

Thanks and Good luck to all
(*This is not financial advice, for sake of discussion and illustrative purposes only*)
Comment: The Bearish divergence seems to be really taking hold now, we made another higher high with an even lower high on the RSI.
Right shoulder seems to have developed too.

Will be interesting to see whether ~$65.50 holds through tomorrow. If not, out bear case back down to the ~$53 mark.