- Most Important is the Candle itself.
- , which is often overlooked.
- Moving Averages (MA & )
- Point Of Control (poc)
This gives us a great insight into the importance of the Moving Averages and the Significance that breaking this support had on the stock of SPCE .
Once the 50ma on the weekly was broken we see that the spiked as this is seen as a very negative trend break, the 50MA was support on multiple occasions but
that was during a bull run for the stock, within this downtrend losing that support opened the trap door and capitulation occurred.
Support was found on the Shelf (node) you will see on the weekly chart how it was identified.
The relief bounce (04/16) then found resistance at the Yearly Candle , we see 1 candle broke above and failed then the second 30min candle also got rejected and selling once again dominated the action.
It is fair to say now that this stock has developed a Local Range between Support ( Shelf) and Resistance (Yearly s/r) and until that is resolved it is best to sit
on the sidelines.
Major resistance on the weekly is now the 50MA and until reclaimed the is intact.
You will see on the charts which follow how and why we have selected certain pivotal levels.
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You will see that the anchor points used are from the major pivot low to the major pivot high.
The major drop last week can also be attributed to losing the much cherished 0.65 -0.618 levels as support, which is referred to as the Golden pocket.
$20.52 is now our next Fibonacci support to consider, although it is deep it is quite common after such impulsive moves higher.