Liberty Energy Inc. (LBRT) - Potential Reversal Opportunity
LBRT has recently completed wave C of an ABC correction pattern, touching the lower trendline of a long-term ascending channel. This level aligns with the 1.028 Fibonacci extension ratio ($15.17), acting as a strong support zone.
Current Observations:
- Price has retraced to a key support level within the channel.
- RSI (14) is in the oversold territory (28.60), historically indicating reversal points.
- The confluence of Elliott Wave structure and trendline support suggests an upward move.
Potential Move:
A bounce from this support zone could lead to a bullish recovery towards the mid-channel range (~$17.42) and possibly retest prior highs (~$22-$25) if momentum builds.
A strong bounce here could signal the start of a new impulsive wave (Wave 1 of the next bullish cycle). Confirmation with increasing volume and a break above the short-term moving averages will further strengthen the bullish bias.
What are your thoughts on this setup? Let’s discuss!