What a great ride this has been the past week! Obviously, this was going to see a significant drop sooner or later. But looking for a bullish continuation after that big red candle. To confirm a bullish reversal after the inverted green hammer, I'm looking for the next day's candle to close above the high of the inverted hammer. Here's the breakdown:
-The high of the inverted hammer is $6.75 (since the candle closed at this price).
For confirmation, you'd want the next candle to:
1. Close above $6.75 to show bullish momentum.
2. Ideally close higher than any intraday resistance observed on the inverted hammer's upper wick (if applicable). ($7-$7.07)
Specific Levels to Watch:
-$6.75 or higher: A close above this level confirms the hammer's high was breached, indicating buyers are in control.
-Significantly above $6.75: The higher the close, the stronger the confirmation of bullish sentiment.
Bullish Target Zones (After Confirmation):
1. $7.16–$7.50: Likely first resistance zones based on psychological levels or intraday price action.
2. $8.00 and beyond: If momentum strengthens, reclaiming levels closer to prior highs becomes possible.
Without a close above $6.75, the inverted hammer's signal is invalidated, and the downtrend could resume. Confirmation is essential for determining whether this pattern marks a genuine reversal or just a pause in bearish momentum. We shall find out tomorrow.
-The high of the inverted hammer is $6.75 (since the candle closed at this price).
For confirmation, you'd want the next candle to:
1. Close above $6.75 to show bullish momentum.
2. Ideally close higher than any intraday resistance observed on the inverted hammer's upper wick (if applicable). ($7-$7.07)
Specific Levels to Watch:
-$6.75 or higher: A close above this level confirms the hammer's high was breached, indicating buyers are in control.
-Significantly above $6.75: The higher the close, the stronger the confirmation of bullish sentiment.
Bullish Target Zones (After Confirmation):
1. $7.16–$7.50: Likely first resistance zones based on psychological levels or intraday price action.
2. $8.00 and beyond: If momentum strengthens, reclaiming levels closer to prior highs becomes possible.
Without a close above $6.75, the inverted hammer's signal is invalidated, and the downtrend could resume. Confirmation is essential for determining whether this pattern marks a genuine reversal or just a pause in bearish momentum. We shall find out tomorrow.
Trade active
Holding up in Pre-market pretty well. Would love to see a nice pop to $7+ at open..Note
Golden Cross in play.Note
Today's price action for ACHR provides valuable insight. Here's a breakdown:Key Observations:
1. Opening Price at $6.75:
-Starting at the exact high of yesterday's inverted hammer shows initial bullish enthusiasm, likely driven by buyers anticipating a reversal.
2. High of $7.30 (Twice):
-The stock rallied early and again mid-day to $7.30 but failed to sustain momentum, suggesting selling pressure or profit-taking at this level.
-This could indicate a near-term resistance zone.
3. Closing Price at $6.96:
-The close above $6.75 confirms a bullish breakout from the inverted hammer pattern.
-However, the inability to close closer to the intraday high ($7.30) reflects indecision or cautious optimism among buyers.
Technical Analysis:
-Bullish Confirmation:
--A close above $6.75 validates the inverted hammer’s signal, confirming some level of buyer control.
--The higher low at $6.84 compared to yesterday’s $6.41 open shows a shift toward stability.
-Resistance at $7.30:
--Hitting $7.30 twice and retreating suggests this is a key resistance level.
--Bulls need strong volume to break and hold above $7.30 to signal sustained upside.
-Volume Check:
What does the Volume Indicate?
-Above-Average Volume:
--The higher-than-usual volume suggests heightened market activity and interest in ACHR, likely driven by technical patterns and the recent sharp price movements (the 30% drop and subsequent recovery).
--This confirms that today's action wasn't isolated or due to a lack of participation. Both buyers and sellers were active.
-Bullish Implication:
--The close above $6.75 with strong volume supports the idea that buyers are stepping in and defending this key level.
--Although the stock couldn't break above $7.30, the volume indicates there’s sufficient interest to potentially test and break resistance in the near term.
-Resistance at $7.30:
--The failure to sustain a move above $7.30 despite increased volume hints that this level is a significant resistance. It may take even stronger buying pressure to overcome it.
Next Steps Based on Volume and Price from today:
1. Breakout Confirmation:
-Tomorrow, if volume remains strong and the stock closes above $7.30, it would be a bullish breakout signal.
-I'm looking for volume exceeding today’s 39.11M to validate such a move.
2. Caution on Weak Volume:
-If tomorrow's volume decreases and the stock struggles at or below $7.30, it could indicate a consolidation phase or even a bearish pullback.
3. Support to Watch:
-Volume at the $6.75 level will be critical. If it drops below this key level on high volume, it could signal increased selling pressure.
Today's above-average volume supports the validity of the inverted hammer's bullish signal. However, the resistance at $7.30 is formidable, and tomorrow's volume and price action will be critical in determining whether ACHR can sustain its recovery or needs more time to consolidate. I'll keep watching the $7.30 level and the volume closely for the next key signal!
Note
The after-hours close at $7.05 is a constructive sign, with the price inching closer to breaking the key resistance at $7.30. Watching for early trading action tomorrow to see if the bullish momentum continues and whether the stock can sustain a breakout. This setup remains promising but requires confirmation from tomorrow's regular session. Price Target TBDNote
The pre-market increase above the $7.30 resistance level is a positive indicator. If ACHR can open and sustain trading above this level with robust volume, it may confirm a bullish breakout, potentially leading to further gains. Conversely, failure to hold above $7.30 could result in consolidation or a pullback.Please note that pre-market movements can be volatile and may not always reflect the stock's performance during regular trading hours. It's advisable to monitor the stock closely and consider broader market conditions when making investment decisions. Let's see how this plays out today..
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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.