Lyft Showing signs of Life, have we Bottomed?
Updated
Hi guys! Welcome to an analysis on macro developments of Lyft (LYFT). With the markets doing what they've been doing this year, we have to ask, " Will the % gains come to stocks that are still many many % down from their tops"? Or are some stocks just doomed to fizzle out and take time to re-build/ grow?
Well, if we are in a Bull market, which i personally think we are... Assets with Solid Market Structure & Technicals will also be included into the liquidity being injected into the markets.
Taking a glance under the hood with LYFT, i can see some promising developments playing out. Making me consider LYFT as a Long play.
This analysis is strictly on Technicals and is on the 1 Week timeframe to get a big picture view.
So lets look at Price Action:
Last week candle has broken ABOVE the Major Resistance trendline which has worked to cause Price Declines since November 2021
Notice how we've had many touch points on this Resistance line in RED.
I believe it to have been weakened, thus the current BREAKOUT.
Do we go back to print All Time Highs now? Absolutely NOT.
It requires alot of energy or momentum to break major trends.
But its the 1st step to the road of getting back to all time highs.
We also need Confirmation before anything. This 1 candle is not enough, though an extremely BULLISH candle, a Bullish ENGULFING candle. Which is a great sign and pushs probabilities for confirmation as well.
But we need to now Test the Resistance line as SUPPORT.
With the overlaying Resistance line ABOVE us, i believe we will get a push down to the Support Test.
But so far the break out to me is promising:
Why? Look to the Volume for clues. We are so far seeing increased volume. It is important that it continues.
If at the end of this week, you see Volume has declined. We would need to reassess the breakout, as that would potentially mean this could be a Fakeout.
So getting ABOVE Major Multi year resistance, would support the idea of Trend Change/ perhaps Trend Reversal and a sign hinting that the Bottom is in.
Another Bottoming sign observed = BULLISH DIVERGENCE being spotted.
This is when Price Action prints Lower Lows BUT Indicators print Higher Lows.
Seen in the RSI -> Notice if and when we get above the Resistance line, we will see large % gains.
Another indicator to watch would be the STOCH RSI, as we are getting close to a BULLISH CROSS. If we get it, we will see bullish momentum come in, perhaps pushing prices above this horizontal resistance line.
Anyway i think things are hinting at the idea that we have bottomed. We are in a critical moment for LYFT and we must continue to monitor this week and more.
__________________________________________________________________________________
Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again.
Stay tuned for more updates on LYFT in the near future.
If you have any questions, do reach out. Thank you again.
DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy.
Well, if we are in a Bull market, which i personally think we are... Assets with Solid Market Structure & Technicals will also be included into the liquidity being injected into the markets.
Taking a glance under the hood with LYFT, i can see some promising developments playing out. Making me consider LYFT as a Long play.
This analysis is strictly on Technicals and is on the 1 Week timeframe to get a big picture view.
So lets look at Price Action:
Last week candle has broken ABOVE the Major Resistance trendline which has worked to cause Price Declines since November 2021
Notice how we've had many touch points on this Resistance line in RED.
I believe it to have been weakened, thus the current BREAKOUT.
Do we go back to print All Time Highs now? Absolutely NOT.
It requires alot of energy or momentum to break major trends.
But its the 1st step to the road of getting back to all time highs.
We also need Confirmation before anything. This 1 candle is not enough, though an extremely BULLISH candle, a Bullish ENGULFING candle. Which is a great sign and pushs probabilities for confirmation as well.
But we need to now Test the Resistance line as SUPPORT.
With the overlaying Resistance line ABOVE us, i believe we will get a push down to the Support Test.
But so far the break out to me is promising:
Why? Look to the Volume for clues. We are so far seeing increased volume. It is important that it continues.
If at the end of this week, you see Volume has declined. We would need to reassess the breakout, as that would potentially mean this could be a Fakeout.
So getting ABOVE Major Multi year resistance, would support the idea of Trend Change/ perhaps Trend Reversal and a sign hinting that the Bottom is in.
Another Bottoming sign observed = BULLISH DIVERGENCE being spotted.
This is when Price Action prints Lower Lows BUT Indicators print Higher Lows.
Seen in the RSI -> Notice if and when we get above the Resistance line, we will see large % gains.
Another indicator to watch would be the STOCH RSI, as we are getting close to a BULLISH CROSS. If we get it, we will see bullish momentum come in, perhaps pushing prices above this horizontal resistance line.
Anyway i think things are hinting at the idea that we have bottomed. We are in a critical moment for LYFT and we must continue to monitor this week and more.
__________________________________________________________________________________
Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again.
Stay tuned for more updates on LYFT in the near future.
If you have any questions, do reach out. Thank you again.
DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy.
Note
Watch the Major Resistance Line for a test of Support.
This would make an ideal trade scenario.
Would look to take positions here and place stop loss below this line.
Watch also the Resistance line above. We can go to this first, a touch here would make a decline to test Support more likely.
Another idea would be to get cost average down near the support line.
Note
We have come down to the 21 EMA to test as Support
Watch if we continue lower to touch Red Major Resistance Zone or not.
But note, we may not even since the 50 SMA , 21 EMA and this Resistance hopefully turning Support line all converge here.
Note
Things looking Bearish on 3 Day.
We need to see BUYING pressure come in by the close of this candle on the 8th.
But its currently not a good look.
RSI is back below Black Moving Average, this could mean further declines.
Note
Also need 21 EMA as SUPPORT.
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