WIX tells Bearish StoriesWIX Performed well in the last 5 years, and shows a strong bullish move.
Daily Chart - The Whole Picture (Line):
Since March 2020, WIX Moved rapidly from Trading zone 1, to Trading Zone 2, by single print move:
The Buyers took the price up into New Trading Zone which shows signs of weakness - clear picture of Supply expansion.
When reached the new zone, WIX formed a proper Head and Shoulders Pattern, which failed to keep the Neckline clean, and therfore, became unreliable.
The former Pattern, evolved into Descending Triangle - Reversal Pattern with Major Trend implications - Which looks very promising.
Descending Traingle Requirments :
- 2 falling Tops, 2 Flat Bottoms.
- The pattern should arrive after Major Bullish trend.
- The Breakout should be in a range between 50%-75% of the overall Triangle - The Vertical Yellow Line Represents the 75% border.
- The Breakout should be with Low Volume , High Volume Breakout would probably take the price back to the Demand Line (Support).
Potential Move:
- The Minimum Potential move is equal to the vertical range between the first Top of the traingle to the Demand Line (Support) Pasted from the Demand line downward.
In our case, the Minimum Potential is 168.76 (The Dashed Green Line):
- The Breakout move should be with the same behavior as the last bullish move before the triangle, in the case of WIX - Vertical Move:
Moreover, by streching Fixed Range Volume Profile, we can see the Low Volume Zone clearly:
The Stock does not like to be traded inside the mentioned zone. Therefore, the price is expected to slide on this zone like Butter on Hot stone.
Conclusion:
While the overall market, and especially the Tech Sector, is on unrational euphoric Bullish state - WIX shows very promisng weakness signals, and the picture is completly bearish.
Understand: The Indexes are nothing but a mix of stocks. Thus, by finding such strong stocks with a strong weakness signals, we have to be even more cautious about the expected continuation of the Bull Market.
By digging into to indexes we can find the dirty stocks which might pull the market down in the future.
Entery Signal:
Low volume brakeout which make a distance of at least 3% from the Demand line Price.
If the breakout will occur with high volume, a retest might be expected.
Determine Good Stop Loss point, and take responsibility on your position.
Good Luck!
