SAGA is trading at $2.23, after a correction from its recent high of $2.73. The price is currently below the PDL (Previous Demand Level) at $2.3 and is retesting the $2.2 support zone.
Technical analysis:
ALL:
Previous Bullish Phase: Observe a sharp increase in trading volume during bullish phases, indicating active participation of buyers and strength of the uptrend.
Current correction phase: Trading volume is decreasing during the downtrend, indicating that the selling pressure is not too strong and could be a healthy correction.
Current Candle: The current candle is a green candle with moderate volume, indicating that buying pressure is returning.
Wyckoff:
Distribution Phase: The price range of $2.5 - $2.73 can be considered a distribution phase, with many volatile candles and the formation of the "Upthrust After Distribution" (UTAD) pattern.
Markdown Phase: After UTAD, the price has dropped sharply and is currently in Markdown phase.
Potential Accumulation Phase: If the price holds the $2.2 support zone and forms accumulation signals such as Spring or Test, there is a high possibility that SAGA will enter an accumulation phase before increasing in price again.
Indicators:
RSI: RSI is at 40, indicating that the market is not oversold and still has the potential to fall further.
MACD: MACD is below the signal line and is trending down, indicating that the bearish momentum is still intact.
Support and resistance levels:
Nearest Support: $2.2, $2.0, $1.4 (Strong Low)
Nearest Resistance: $2.3 (PDL), $2.5, $2.73 (Nearest Peak)
Forecast:
Short term: Price may continue to test the $2.2 support zone. If this zone holds, price may recover to $2.3. Conversely, if it breaks $2.2, price may fall to $2.0.
Medium term: If SAGA forms accumulation signals in the $2.2 zone, the price may rise back to the $2.5 zone in the medium term.
Long Term: SAGA’s long term trend still depends on whether the price breaks the $2.73 resistance zone. If it does, SAGA could enter a new bullish phase.
Entry point:
First:
Price broke the resistance of $2.3 with a strong increase in trading volume.
Price forms bullish reversal patterns at the $2.2 support zone (eg Spring, Test).
Sell:
Price breaks support at $2.2 with strong increase in trading volume.
Price recovered to $2.3 zone but failed to break and formed bearish reversal patterns.
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