After a waterfall drop in the stock, it seems to have eventually found some buyers as we look to close for a second day above the 20 day moving average.
A possible falling wedge pattern may be in play .
R8.50 is the next major level while bulls can hold onto R6.20
The falling wedge pattern is a chart pattern that can signal a bullish reversal after a downtrend or a trend continuation during an established uptrend. It is characterized by a set of lower lows and lower highs that slope downwards and contract into a narrower range before price finally breaks above the resistance line and a change in trend direction occurs. The upper resistance line tends to have a steeper descending angle than the lower support line. Falling wedge patterns form by connecting at least two to three lower highs and two to three lower lows which become trend lines.
A possible falling wedge pattern may be in play .
R8.50 is the next major level while bulls can hold onto R6.20
The falling wedge pattern is a chart pattern that can signal a bullish reversal after a downtrend or a trend continuation during an established uptrend. It is characterized by a set of lower lows and lower highs that slope downwards and contract into a narrower range before price finally breaks above the resistance line and a change in trend direction occurs. The upper resistance line tends to have a steeper descending angle than the lower support line. Falling wedge patterns form by connecting at least two to three lower highs and two to three lower lows which become trend lines.