SOS-did you buy too high -what to do next ? SOS
So let's talk technicals :
The stock shot up 263% (red trend line) in 6 days. It did it in 2 waves of impulse.
The stock got massively dumped on the 17th of Feb – this is a big drop in a 2-hour time frame with over 50% retraced. Not a good behavior of an asset with a catalyst on it as it looks like a pump and dump which is not the case but traders took it as a flip!
Correction on the drop of 50% up from 10.5$ to 13$ -then stock lost traction several dojis in a row.
Guess what comes after several dojis in a row – a drop😊 that’s usually the case if you have an igniting bar followed by Dojis.
The stock touched below 10 – notice 10.5 is a KEY number on this trade!
Volume of entry is bigger than the volume of exit meaning the cycle is completed and now we wait to see where the second cycle takes us (opening volume vs closing volume)
RSI showing more room on the downside on 1H meaning on a 4H we are on the mid of the RSI level
What's the play?
Simple :
If the stock crosses 10.5 below and hits 9 this could be a convergence level where the stock will slowly travel downwards…. We must watch out for 10.5 level and 9 levels!
on the Other hand, if the stock bounces off the 10.5 to the 11.5 line and CROSSES it – we are good to go to the previous high at 16$ and potentially get a new higher high.
Notice accumulation is needed above 11.5 so we may get a side trend on that level before we go to the 16$
Volume Analysis :
3-month average: 23.5M
1-month average volume: 48M
Volume that drove the first wave up 70M
Volume that drove the price down 60M (good means we still have a lot of traders in on this one)
Current volume: appx 10M -keep an eye if crosses 30M we may get another wave up
FDGT will wait to see whats the stocks next move and if we get 11.5$ + we may jump in
Please do your own DD on the stock and trade safe!
We expect a correction on BTC soon that may correlate with the stock
Trade safe and be safe
FDGT the traders union
