Capitulatory volume has carved its way into the price action of ASTS. A core development we want to observe as it proceeds to bottom out.
Despite a series of bullish PRs and all-time high sentiment in the space sector, ASTS completed a 5-wave move from April to July, marking the end of Subwave 1 of Primary Wave 1 (as shown in the chart). Since then, it has ABC corrected into a head-and-shoulders bearish pattern during Subwave 2, leading to an extended drawdown.
I expect the 100DMA to be tested at the 0.5 Fibonacci retracement level. If this is lost, the 0.618 Fib retracement or even the 200DMA comes into play.
Regardless, long-term the trend is extremely bullish and this correction is welcome as Daily RSI (39) reaches near oversold levels. After this correction, I expect Subwave 3 to be a strong, parabolic move towards $103.50. I plan to buy the dip if it tests the 100DMA.
ASTS good reaction from the mid-term support zone highlighted last week.
Now watching reaction to 48–56 local resistance. A steady series of higher lows into MA support without heavy selling would suggest a constructive base forming ahead of a potential break-out above July highs. But as long as price is closing bellow 56, risk of another leg lower into mid-term support this autumn remains.
ASTS price has been aligning with the trend structure from earlier updates. It has reached a key mid-term support level and appears poised for at least one more bounce attempt or potentially a stronger upside reversal with follow-through above July highs in the coming weeks.
ASTS Of all the stocks this one is the most bizarre. I don't care about their future contracts. At their current Revenue level this stock should be under $10. Their PE Ratio is meaningless because it is at -23.... This means you are paying approximately $23 per share of each $ of negative earnings. Therefore with negative earnings of -$1.86 you should remove $42.78 from the share price to get fair market value. That would suggest that if they were Breaking Even (which they are not) subtract the current price and $42.78 to arrive at $8.22. I understand that their are significant contracts in place but so far they have generated Shiite, however giving the benefit of a doubt, and double the price to $16.44 or even triple it to $24.66 would be an exceptional short term share price. Watch for Downgrades by 2 or 3 analysts in the near future.
ASTS Update 🟢
