Review
After two unsuccessful attempts to surpass the old high at approx. $12.50, initially, a stronger sell-off until under the 200 SMA took place. After a further recovery, the next sell-off immediately took place with considerably higher volume , whereby even the lows from slightly further back were also significantly undercut. This was, at the same time, also the confirmation of the now-existing downward trend, which is currently in a correction. If the technical counter-movement continues to last, this would result in a downward potential in the short direction with up to 50%.
Outlook
In the hourly chart we can see the currently running correction, which has yet to develop in our preferred trading direction. For a short entry, we should wait for the formation of a signal, e.g. in the form of a new low, and place the stop loss above the last high. Alternatively, and with the advantage of a more favorable stop, one can also practice trading out of the correction or the formation of a reversal candle at a significant point.
The targets are located in the areas around $8.35 and lower (see green zone in the daily chart ), which makes the stock even more attractive for short entries.
If the price clearly exceeds the last significant high at approx. $11.30, we should abandon the short scenario for the time being ( daily chart depicted in red). Before trading, one should take news in the environment and from the company into account. Similarly, one should also observe the development of the overall market.
After two unsuccessful attempts to surpass the old high at approx. $12.50, initially, a stronger sell-off until under the 200 SMA took place. After a further recovery, the next sell-off immediately took place with considerably higher volume , whereby even the lows from slightly further back were also significantly undercut. This was, at the same time, also the confirmation of the now-existing downward trend, which is currently in a correction. If the technical counter-movement continues to last, this would result in a downward potential in the short direction with up to 50%.
Outlook
In the hourly chart we can see the currently running correction, which has yet to develop in our preferred trading direction. For a short entry, we should wait for the formation of a signal, e.g. in the form of a new low, and place the stop loss above the last high. Alternatively, and with the advantage of a more favorable stop, one can also practice trading out of the correction or the formation of a reversal candle at a significant point.
The targets are located in the areas around $8.35 and lower (see green zone in the daily chart ), which makes the stock even more attractive for short entries.
If the price clearly exceeds the last significant high at approx. $11.30, we should abandon the short scenario for the time being ( daily chart depicted in red). Before trading, one should take news in the environment and from the company into account. Similarly, one should also observe the development of the overall market.
