Paysafe Limited appears to be taking step 1 in a series of steps it must take to reverse the long downtrend it has been in most of the year.
The price is currently battling at the .236 fibonacci area from the previous swing high around $13. If bulls cannot hold above the .236 of this swing, then that means much more downside is likely.
Keep in mind, that when you have capitulation below the .236 followed by a run up back ABOVE it, it is usually very difficult for bears to force price action back below it and sustain it for long. In otherwords, breaking back above the .236 is the point of no return for bears.
An area I am most often a fan of for placing large position longs, PSFE currently above the .236 fib may be the setup many traders have been waiting on.
If this trade is taken, stop losses just below $10.63 would be advised ($10.58, $10.55, etc.)
The price is currently battling at the .236 fibonacci area from the previous swing high around $13. If bulls cannot hold above the .236 of this swing, then that means much more downside is likely.
Keep in mind, that when you have capitulation below the .236 followed by a run up back ABOVE it, it is usually very difficult for bears to force price action back below it and sustain it for long. In otherwords, breaking back above the .236 is the point of no return for bears.
An area I am most often a fan of for placing large position longs, PSFE currently above the .236 fib may be the setup many traders have been waiting on.
If this trade is taken, stop losses just below $10.63 would be advised ($10.58, $10.55, etc.)
Comment:
I wanted to update as I see there is still curiosity with this idea. One thing traders should keep in mind is that PSFE is a very low marketcap stock so it takes very little to move the price in drastic directions one way or the other. I will also say that predicting with certainty how stock holders will respond to news events such as earnings is extremely complex. For this reason I simply just look at the chart as that generally tells me how traders may respond to upcoming earnings. So with that being said, that would mean that the sentiment, at least right now, is still bearish on PSFE unfortunately. This is due to the fact that the price has broken back below $10.63 and has failed to even test moderate retracement levels on what was just a small overall retracement swing. Meaning that the target for this trade should have been easily attainable IF this asset was bullish, yet the bulls STILL could not manage to break and hold above even just shallow levels of retracement. I hope for new traders this does not sound to technical.. just know PSFE's price action has been very poor at areas where bullish price action typically occurs. And that is the reason for much concern.
This of course could all change quickly if Paysafe ever gets back above $10.63 AND HOLDS it as support but for all the reasons I listed above I would tread very careful with this one if you are inexperienced as a trader.
This of course could all change quickly if Paysafe ever gets back above $10.63 AND HOLDS it as support but for all the reasons I listed above I would tread very careful with this one if you are inexperienced as a trader.
Right now anything above $10.63 is a buy but beware that PSFE has trapped bulls before with fake outs. So maintaining the .236 fibonacci level as well as breaking above our next support level at $11.15 will be important.
Tight stop losses below $10.63 again.