Key Observations:
• Falling Wedge Pattern:
The price is confined within a narrowing downward-sloping wedge, with Resistance (R1) near $7.50 and a support line descending slightly from the $7.04 region. Such a pattern often signals a potential bullish reversal if confirmed by a breakout above the upper line.
• Support/Resistance Levels:
• Strong Support: ~$7.04
• Secondary Support: ~$7.00
• Deeper Support: ~$6.80
• Initial Resistances: $7.50 (R1), followed by $8.00 (R2).
• Potential Strategy:
Consider entries near the $7.10-$7.20 area if support holds. A break above $7.50, especially with increased volume, could signal a bullish move toward $8.00 and beyond. Set stop losses below $6.90 to manage risk.
• Risk Management:
Falling wedges are potential reversal patterns, but confirmation is key. If price breaks down below strong support ($7.04) with high volume, the bullish scenario weakens.
Note: This is an illustrative, AI-generated analysis (Not Financial Advice). Always verify with real data and exercise proper risk management.