ATRO Struggling?
Updated
Price action of ATRO does not look promising.
1. First, from May to Aug timeframe, looked to be forming a bullish wedge candlestick pattern (though RSI did not show any buildup). This is drawn with the dotted black trendline, and ended with a harsh drop due to a earning report about 50% less than expected.
2. The solid black trendline down has formed a consistent rejection point, and most recently the ichi cloud continually pushed down price, causing rejection wicks pointed to by green arrows. And continues to do so. If this goes on like this, there will not be much room for upwards movement.
3. For the SMAs: The price just wicked down from rejection of the SMA21 and SMA50. Up above is the SMA100 in blue, which price may have a difficult time reaching in the first place.
4. Lastly, have been many iterations of rejections and supports, shown circled in black. Dating back to Nov of 2018. This price line has shown up again in the past week or so. Yet another resistance to beat.
There is not much time left in this triangle. However the next earnings release is slated for early November, so maybe things will meander until then.
Now, zooming out to the monthly as shown below:
There is a lot of up and down swings, post the price peak. This reminds me of the BTC chart from the 20k peak. Massive chop with a consistent bottom, until that bottom broke massively and fell 50%. But for ATRO, I am going to put a target of $20 which is near the 0.786 FIB. That is still a pretty massive drop from the current ATRO price of $29. Also see if that 200SMA can give a bounce.
The red box is where an additional region of resistance should be, but that box is already above a lot of other resistances.
Last thing to see is the OBV is in steady decline, which may help to give some clarity despite the price chop.
-- For an alternate perspective here is an article: https://finance.yahoo.com/news/diamondback-oshkosh-casualty-list-154401597.html
1. First, from May to Aug timeframe, looked to be forming a bullish wedge candlestick pattern (though RSI did not show any buildup). This is drawn with the dotted black trendline, and ended with a harsh drop due to a earning report about 50% less than expected.
2. The solid black trendline down has formed a consistent rejection point, and most recently the ichi cloud continually pushed down price, causing rejection wicks pointed to by green arrows. And continues to do so. If this goes on like this, there will not be much room for upwards movement.
3. For the SMAs: The price just wicked down from rejection of the SMA21 and SMA50. Up above is the SMA100 in blue, which price may have a difficult time reaching in the first place.
4. Lastly, have been many iterations of rejections and supports, shown circled in black. Dating back to Nov of 2018. This price line has shown up again in the past week or so. Yet another resistance to beat.
There is not much time left in this triangle. However the next earnings release is slated for early November, so maybe things will meander until then.
Now, zooming out to the monthly as shown below:
There is a lot of up and down swings, post the price peak. This reminds me of the BTC chart from the 20k peak. Massive chop with a consistent bottom, until that bottom broke massively and fell 50%. But for ATRO, I am going to put a target of $20 which is near the 0.786 FIB. That is still a pretty massive drop from the current ATRO price of $29. Also see if that 200SMA can give a bounce.
The red box is where an additional region of resistance should be, but that box is already above a lot of other resistances.
Last thing to see is the OBV is in steady decline, which may help to give some clarity despite the price chop.
-- For an alternate perspective here is an article: https://finance.yahoo.com/news/diamondback-oshkosh-casualty-list-154401597.html
Trade active
Trade closed: stop reached
Note
After clearing my stop, candle is currently forming a falling star. Will be a nice lesson in bad timing if ATRO starts to go short from here.Note
Massive wick took out my stop, but afterwards went according to plan. Perhaps should have waited for resistance rejection before hopping into the ride down.
Note
Target reached 🥳
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