Was INDI struggling to break the trendline?
The stock price attempted to break the trendline, as shown in the picture, but the volume profile was not promising. Momentum and RSI (not shown here) are still in good shape. However, the latest candle was a small green candle with mostly negative deltas, and the Point of Control (POC-Yellow) also had a negative delta and was declining.
I hope the price will respect the EMA25 (white line), with buyers gaining strength next week. If not, the price will be going down, with the support levels - 4.14 and 3.86, respectively.
INDI trade ideas
Stock Of The Day / 12.03.24 / INDI12.03.2024 / NASDAQ:INDI
Fundamentals. Premarket down 20% after news of $175 million private offering of convertible senior notes.
Technical analysis.
Daily Chart. Daily level 4.00 formed by a break in the trend on the daily chart on 11.18.24 is ahead.
Premarket. High premarket volume. Gap Down.
Trading session. Intraday level 4.40 was formed in the first hour of the session and the price was tightened to the level. After breakout of 4.40 at 11:44 a.m. there was no significant impulse in the direction of the breakout and the price quickly returned and consolidated below 4.40. We are considering a short deal.
Trading scenario: false breakout with retest (false tighten with retest) of level 4.40
Entry: 4.37 after second touch and pure level holding
Stop: 4.42 above the high of consolidation
Exit: There is a pure trend movement in the direction of the trade. You can close part of the position before the low of the day 4.10, and hold the rest until the close of the session or close this trade in parts (for example, part of the position RR 1/3, another part RR 1/5, etc.) in accordance with your trading system.
Risk Reward: 1/7
INDI ThoughtsNever made any money; revenue growing very rapidly in recent years; could be a huge company if it gains market traction and self-driving cars take off, which - lets face it - they will. Chart is a complete mess but the overall theme in my view is corrective price action trying to find a bottom before taking off. Volume starting to increase so I think we are close. An ABC starts with an expanding flat for the A wave, straightforward B wave and now a troubling C wave! Final target for me is the purple box; dollar cost averaging starts at $4.87.
$INDI heading back to its main support?$INDI did as I expected in my last post on $INDI. Considering the general tax selling sell-off in the market towards the end of the year it is possible that it is headed to its main support area around $11, which is nearly 200SMA today. This is a drastic pullback, but SPACs have not found their firm stepping stone to higher prices yet.