Magic Stalls at Resistance: Bearish RSI, Potential Retest Lo
Magic is on the cusp of a critical resistance level at $1.4973. While the price recently established a new high, a potential bearish signal is emerging from the Relative Strength Index (RSI).
Technical Analysis:
Resistance: $1.4973
Support: $1.2646 (Daily: $1.2613, Monthly: $1.0208)
Relative Strength Index (RSI): Bearish Divergence (New price high, lower/same RSI level)
Volume: Recent price test at $1.4973 coincided with decent buying pressure
Key Observations:
The RSI is indicating a bearish divergence. This suggests that the uptrend momentum might be weakening despite the recent price increase.
A significant support level exists at $1.2646 if the price breaks below $1.4973. Additional support levels lie at $1.2613 (daily chart) and $1.0208 (monthly chart).
If the price manages to overcome $1.4973, the next key resistance level on the monthly chart is $1.8231.
Volume Analysis:
The recent price test at $1.4973 was accompanied by decent buying pressure, but the price ultimately faced rejection. This suggests a potential struggle for the bulls to break through this resistance zone.
Conclusion:
The bearish divergence on the RSI, coupled with the price rejection at $1.4973 despite buying pressure, increases the chances of a pullback. Traders should closely monitor the price action around this resistance level. A break above could signal further gains towards $1.8231, while a break below could lead to a decline towards $1.2646 support, with additional support at $1.2613 (daily) and $1.0208 (monthly).
This information is for educational purposes only and should not be considered financial advice. Please conduct your own research before making any investment decisions.
Technical Analysis:
Resistance: $1.4973
Support: $1.2646 (Daily: $1.2613, Monthly: $1.0208)
Relative Strength Index (RSI): Bearish Divergence (New price high, lower/same RSI level)
Volume: Recent price test at $1.4973 coincided with decent buying pressure
Key Observations:
The RSI is indicating a bearish divergence. This suggests that the uptrend momentum might be weakening despite the recent price increase.
A significant support level exists at $1.2646 if the price breaks below $1.4973. Additional support levels lie at $1.2613 (daily chart) and $1.0208 (monthly chart).
If the price manages to overcome $1.4973, the next key resistance level on the monthly chart is $1.8231.
Volume Analysis:
The recent price test at $1.4973 was accompanied by decent buying pressure, but the price ultimately faced rejection. This suggests a potential struggle for the bulls to break through this resistance zone.
Conclusion:
The bearish divergence on the RSI, coupled with the price rejection at $1.4973 despite buying pressure, increases the chances of a pullback. Traders should closely monitor the price action around this resistance level. A break above could signal further gains towards $1.8231, while a break below could lead to a decline towards $1.2646 support, with additional support at $1.2613 (daily) and $1.0208 (monthly).
This information is for educational purposes only and should not be considered financial advice. Please conduct your own research before making any investment decisions.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.