VIRTUAL - A Long Opportunity or More Pain Ahead?VIRTUAL has dropped over 50% from its all-time high of $5.14, now trading around $2.50. A head and shoulders pattern has formed, with price currently testing the neckline, a bearish sign that could signal further downside. Let’s break down potential targets and trade setups.
Key Levels and Support Zone:
1.) POC from December 2024 Range:
Located at $1.67, a significant level from previous trading activity
2.) Anchored VWAP:
Taken from the lows, currently around $1.62, reinforcing the $1.66 zone as strong support
3.) Fibonacci Retracement (Log Scale):
The 0.382 Fib from the recent wave sits at $1.77, providing additional confluence for the support area
4.) Trend-Based Fibonacci Extension:
The 0.786 Fib aligns at $1.71, further strengthening the $1.70–$1.80 range as a reliable support zone
Trade Setups:
Short Setup:
Entry: $2.836 (Fib retracement 0.618 from the current downtrend)
Target: around $1.80
Stop Loss: Above $3
Risk-to-Reward: 5:1
Potential Drop: 30–40% from the entry level
Long Setup:
Entry: $1.70–$1.80 range
Target: Depends on confirmation and take profit areas. A realistic initial target could be around $2-$2.30
Stop Loss: Below $1.52
Risk-to-Reward: 2:1 or better depending on take profit strategy
