I’m tracking price as it retraces into the 0.5–0.618 Fibonacci zone, where I expect a potential base to form. With declining volume confirming the pullback is losing momentum, I’ll look for a clear basing pattern or double-bottom on lower timeframes before entering long. If confirmed, the plan is to position for a continuation move back toward previous highs.
Trade active
Update:Price has responded to the 0.5–0.618 retracement zone as anticipated, showing initial signs of support and a short-term bounce from this area. RSI has recovered from oversold back to neutral, but volume remains subdued, suggesting the market is still in the process of forming a base.
At this stage, I’m monitoring for confirmation of accumulation- specifically, a higher low or a period of consolidation above $6.27. A sustained move and close above $7.00, ideally supported by an uptick in volume, would provide confirmation for a potential continuation toward $7.50 and above.
Downside invalidation is set below $5.69; a decisive break of this level would negate the setup and prompt a reassessment.
No position until structure confirms. Remaining patient and focused on price development within the identified zone.
Note
Midday Update:Price has moved above the $7.00 level, testing short-term resistance at the 0.382 retracement. While there’s been a constructive bounce from the identified continuation re-entry zone, overall volume remains muted and there’s no clear evidence of strong initiative buying at these levels. RSI sits in neutral territory, reflecting a lack of momentum extremes.
Broader market sentiment, as observed in (NQ), is currently neutral to cautious. Despite early strength, buyers have not pressed session highs, and options activity suggests a defensive tone rather than directional conviction. This backdrop could limit near-term upside follow-through unless there is a clear shift in market participation.
Given these conditions, I remain focused on confirmation of a sustained base above $7.00 and would prefer to see broader market strength or a decisive uptick in volume before increasing exposure. Failure to hold above $6.85 or a return to the lower support zone would indicate that further consolidation is needed.
No change to the plan: maintaining a patient, process-driven approach and allowing price action- within both the stock and the broader market to dictate timing for any new positions.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.