Long - Reversal Starting?
Updated
Price seems to be trading in a descending channel. The 12EMA and 50EMA crossed at the top of the trading range (also accompanied by a short seller report) which sent the SP into a downtrend.
We now see a few indicators pointing to a potential reversal:
Watch for continued consolidation in support area, the 12EMA to start correcting, and a high volume break out of the channel to the upside for confirmation of the reversal. After a break to the upside price may fall back to the top of the channel or upper support area before continuing the uptrend.
Chart – 1HR, Candlesticks, Ext, Linear
Trend – 12EMA 50EMA
Momentum – RSI 14
Volume – MA Length 30
Let me know what you think, thanks for looking!
We now see a few indicators pointing to a potential reversal:
- Bullish Doji candle on the daily chart
- High volume test and immediate bounce off upper support area (along with a response to the short seller report)
- Low volume test of lower support area on a major broad market pullback
- Decrease in selling pressure in the support area
- Bullish convergence of the SP and RSI indicating the momentum to the downside is possibly slowing
Watch for continued consolidation in support area, the 12EMA to start correcting, and a high volume break out of the channel to the upside for confirmation of the reversal. After a break to the upside price may fall back to the top of the channel or upper support area before continuing the uptrend.
Chart – 1HR, Candlesticks, Ext, Linear
Trend – 12EMA 50EMA
Momentum – RSI 14
Volume – MA Length 30
Let me know what you think, thanks for looking!
Trade active
During another major market pullback price still holds up in the support area on very light volume, possible indicator selling pressure is decreasing and stronger hands are holding. RSI on the 1HR and Daily chart still show momentum slowing to the downside. Price briefly broke the 12EMA to the upside. Still scaling into a position here, my current average is $9.18.Note
Daily Chart – The uptrend from Nov is still valid as 12EMA has not crossed below the 50EMA. RSI(14 close) downside momentum has stopped, and shows a key support level around 36, also slight bullish divergence as the close on 2-26 and 3-1 makes a lower low while RSI makes a higher low. Price is finding support around $8 on very weak volume. Even with the broad market selling off and the recent bearish news catalysts, the price is still holding support on weak volume, indicating the sellers are few. Current average $8.82
Note
Price broke major support on another heavy market sell off, daily EMAs crossed on 3/3 signaling possible downtrend. Sold some of this position for a loss and lowered my average to $7.53. Will hold the rest and wait for confirmation of a new uptrend before adding back. Still bullish on UAVS in the long term.Note
As price breaks past $9 the 1HR 12 and 50EMA cross to the upside, indicating a possible change in trend. RSI (10 close) showing strength as we get deep into overbought at (85.5), watching for RSI to pull back and hold midline (50) indicating upside momentum is holding.
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