Let’s test on the charts once more.
On this up to date every day bar chart of ASAN, beneath, we will see that costs have made a brand new low for the transfer down. ASAN is buying and selling beneath the negatively sloped 50-day transferring common line. The 200-day line is cresting. The buying and selling quantity has been heavy since early December as buyers seem like voting with their ft.
The On-Stability-Quantity (OBV) line has labored decrease since late October telling us that sellers of ASAN are extra aggressive than consumers. The Shifting Common Convergence Divergence (MACD) oscillator is bearish.
On this weekly Japanese candlestick chart of ASAN, beneath, we see a blended to bearish image. Costs are in a downtrend as they commerce beneath the cresting 40-week transferring common line. The decrease shadows on latest candles are of no assist as costs have sunk to a brand new low.
The weekly OBV line is regular for now. The MACD oscillator is bearish however it’s/was narrowing.
On this every day Level and Determine chart of ASAN, beneath, we will see the brand new lows which were made however with the hole stuffed in. A draw back worth goal of $12 is proven. I’d search for shopping for curiosity (assist) to develop within the $30 space.
Backside line technique: Proceed to keep away from the lengthy facet of ASAN. Two issues to observe for. Right this moment’s hole may change into an exhaustion hole if the hole is quickly stuffed. One other factor to observe for is a day when the information on ASAN is bearish and the inventory doesn’t decline.
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