The Bottom Line:
- LUCY: Key support at 47 cents, potential resistance at recent high
- NVDA: Strong support at $122.80, resistance at $128 and moving averages
- FFI: Healthy consolidation above key moving averages
- ASNS: Bull pennant pattern forming, potential breakout above resistance
- CMND: Downtrend potentially ending, key breakout level at $1.78
- TSLA: Overall uptrend intact despite pullback, support at $193
LUCY Stock: Navigating Support and Resistance Levels
Key Support Level at $0.47
LUCY stock experienced a pullback today, but this pullback has created an interesting pattern heading into Monday. The key level of support to watch is at $0.47. The bears were able to push the price down throughout the day, but they consistently met resistance at the $0.47 level. While there are no guarantees, it’s plausible to think that if the price comes down to $0.47 again, it could potentially bounce from there.
Resistance Levels to Watch
In the near term, there is an area of resistance to keep an eye on. Especially when factoring in the last 30 minutes of trading, a nice little green candle has formed. It will be interesting to see if this green candle can gain enough momentum to indicate another push up through the resistance level next week.
Potential Trading Opportunity
If you enjoy trading penny stocks that make significant moves and then pull back and consolidate, LUCY stock is definitely one to watch next week. The current setup presents a potential trading opportunity, especially if the price can break through the near-term resistance level. However, as with any trade, it’s crucial to use proper risk management techniques, such as setting stop losses, in case the price breaks down through the support level instead.
NVDA: Bullish Momentum with Strong Support and Resistance
Bullish Momentum Remains Strong
NVDA has been exhibiting relatively wild price action from a support standpoint. The level around $122.80 has seen an incredible amount of buying pressure. Just going through the history, this level has acted as support numerous times, including during the last 30 minutes of trading. While $122.80 is not guaranteed to create a bounce, it is completely reasonable to think that if the price comes down to this level, it could bounce back up.
Potential Short Selling Opportunity
For those who prefer to play the short side, the $122.80 level is also an area where it’s reasonable to think that if the price breaks through it, the breakdown itself could create additional downside selling pressure. Therefore, a break below this well-defined support level could present a potential short selling opportunity.
Resistance Levels to Monitor
In terms of resistance, the main level to watch is around $128. However, in the very near term, keep an eye on the purple line, which represents the 50-period moving average. The price has been struggling with this level recently. Even if the price breaks above the 50-period moving average, it will then need to contend with the 200-period moving average. While the $128 level remains an area of resistance, there are a couple of other hurdles that the price would need to clear before focusing too much on battling that level.
FFIE: Consolidating Above Key Moving Averages
Consolidating Above Key Moving Averages
FFIE has been holding up well despite not putting in a new high today. It’s important to remember that stocks cannot reach new highs every single day, and as long as the consolidation remains healthy, there is no cause for concern. FFIE has managed to hold above two main areas of support – the pink line and the purple line, which represent key moving averages.
Keeping a Close Eye on Moving Average Dynamics
Although FFIE did experience a pullback today, it has still maintained its position above the pink line, which acted as a strong support level this morning. Even if the price were to fall below this level, it remains comfortably above the purple line, which is another crucial moving average. However, it’s worth noting that these two moving averages are gradually converging, creating an interesting dynamic to monitor closely.
Assessing the Overall Trend and Bull Control
If FFIE’s price were to breach below both moving averages, it wouldn’t necessarily indicate a complete breakdown of the chart, but it could suggest that the bulls are starting to lose their grip on the stock. As of now, despite today’s pullback, the overall trend remains healthy, and the primary goal for FFIE is to continue trading above these key moving averages in the coming week.
ASNS: Potential Breakout from Bull Pennant Pattern
Bullish Pennant Pattern Formation
ASNS has formed a very nice pattern that many traders are likely watching closely. The pattern consists of a clear area of resistance and support, with an explosive move in between. This setup resembles a bull pennant pattern, which can be visualized as a golf hole with the flag at the bottom of the pennant.
Potential Breakout and Buying Pressure
While there are no guarantees in trading, it’s reasonable to think that if ASNS consolidates and then breaks through the top part of the bull pennant pattern, the breakout itself could generate significant buying pressure. The pattern, combined with the stock’s strong volume and impressive movement, makes it an attractive watch for traders who favor bull pennants and stocks trading below $5.
Monitoring Price Action for Confirmation
As with any potential breakout trade, it’s crucial to wait for confirmation before entering a position. Traders should keep a close eye on ASNS’s price action in the coming week to see if it can successfully break through the resistance level of the bull pennant. If the breakout occurs with strong volume, it could signal the start of a new bullish trend. However, if the price fails to break out or breaks down instead, traders should be prepared to reassess their outlook on the stock.
CMND and TSLA: Analyzing Downtrends and Uptrends
CMND: Potential Bottom Formation After Downtrend
Bleeding Stops and Sideways Movement Begins
CMND has finally seen a halt in its downward movement, which is an interesting development. While a great move followed by a pullback and sideways movement doesn’t guarantee that the downtrend is over or that the stock will skyrocket back up, it does make the possibility of a bottom formation more plausible. If the price were still dropping consistently, it would be harder to argue that a bottom might be forming. However, the fact that CMND has started to move sideways lends credibility to the idea that the stock may be finding a floor.
Key Breakout Level to Watch
If CMND is going to gain momentum in the upward direction, the key level to watch for a potential breakout is $1.78. A convincing break above this level could signal a shift in sentiment and attract more buying pressure. However, it’s essential to approach this setup with caution and wait for confirmation of the breakout before making any trading decisions.
Assessing the Likelihood of a Trend Reversal
While the sideways movement in CMND is encouraging for those hoping for a bottom, it’s crucial to remember that there are no certainties in the market. The stock could still break down and continue its downtrend, or it could remain range-bound for an extended period. As such, traders should remain vigilant and be prepared to adapt their strategy based on the stock’s price action in the coming days and weeks.
TSLA: Pullback Within an Overall Bullish Trend
Short-Term Perspective vs. Overarching Trend
From a day trader’s perspective, the recent pullback in TSLA might seem concerning, especially for those who bought near the highs with the intention of selling within a short timeframe. However, when considering the overarching trend, the pullback appears to be a normal and healthy correction within a larger bullish move. The stock remains above key support levels, including the $193 level and the 50-period moving average (represented by the purple line).
Stair-Step Pattern Suggests Bullish Momentum
Another way to assess the overall trend in TSLA is by looking at the progression of its lows. By connecting the lows of the stock’s price action, a clear stair-step pattern emerges, with each low being higher than the previous one. This pattern suggests that the bullish momentum is still intact, despite the recent pullback.
Maintaining a Broader Perspective
While short-term traders might be concerned about the recent pullback in TSLA, it’s essential to maintain a broader perspective and consider the overall trend. As long as the stock continues to hold above key support levels and maintain its stair-step pattern of higher lows, the bullish case remains valid. However, traders should always be prepared for potential trend changes and adjust their strategies accordingly.
