$ASND Analysis and Prediction for Ascendis Pharma A/SChart Overview:
Instrument: Ascendis Pharma A/S (ASND)
Timeframe: 1-Hour Chart
Key Features:
Dark Pool Level: Highlighted at $140 (critical resistance).
Pivot Resistance: R1 ($141.91) as a significant resistance level.
Support Levels: S1 ($130.43), MY TGT ($127.07), and S2 ($124.47).
Trendlines:
Green ascending trendline providing support.
Price approaching a wedge structure, tightening between resistance and support.
Volume: Recent increases in volume, particularly on dips, indicate potential accumulation.
Key Observations:
Resistance at $140 and $141.91:
The price has faced multiple rejections around the $140-$141.91 zone, forming a strong resistance.
These rejections are marked by lower highs, signaling seller strength at these levels.
Support at $135.85 and $130.43:
The $135.85 pivot level aligns with the ascending green trendline, acting as immediate support.
A breakdown below this level could lead to a move toward $130.43 (S1 support), followed by $127.07.
Ascending Wedge:
The price is tightening within an ascending wedge pattern, with the upper bound at $140 and the lower bound following the green trendline.
This setup suggests an imminent breakout or breakdown.
Volume Analysis:
Increasing volume on support bounces shows potential buyer interest.
However, lack of volume during rallies toward resistance ($140) indicates hesitation to push higher.
Trading Scenarios:
Scenario 1: Bullish Breakout:
Entry:
Go long above $140 with confirmation (strong candle close above resistance and increased volume).
Targets:
Target 1: $141.91 (R1 resistance).
Target 2: $144-$145 (psychological resistance and potential Fibonacci extension).
Stop Loss:
Below $135.85, invalidating the breakout.
Scenario 2: Bearish Breakdown:
Entry:
Go short below $135.85, confirmed by a breakdown of the ascending green trendline and volume spike.
Targets:
Target 1: $130.43 (S1 support).
Target 2: $127.07 (MY TGT and stronger support zone).
Target 3: $124.47 (S2 support).
Stop Loss:
Above $140, invalidating the bearish thesis.
Risk Management:
Use a 1:3 risk-to-reward ratio to ensure profitable trades.
Adjust position sizes according to individual risk tolerance.
Volume Consideration:
A volume spike at key levels (breakout above $140 or breakdown below $135.85) will validate directional moves.
Weak volume during consolidation increases the likelihood of a false breakout or breakdown.
Summary:
The current chart setup for ASND suggests a critical decision point. The ascending wedge pattern indicates tightening price action, with resistance at $140-$141.91 and support around $135.85-$130.43. A breakout or breakdown from this zone will determine the next significant move. Traders should monitor volume and price action closely for confirmation.
