8/17/2022
Is this the part where the bears step in?
I’d think so…
Bulls have had weeks of playtime and, as we all know, the protagonist must make his way to center stage at some point…
And some are worth a spot on the watchlist.
Let’s look at the 375-minute chart today…
FSLY broke a great number of hearts over the last year, but tech as a whole did as well.
Being that this one has yet to break out, is it being accumulated?
Potentially… It could also be preparing to chop off another leg.
As part of our regular programming, we should look at the Support and Resistance levels.
Well, the range is pretty clear: Green, Support. Red, Resistance.
All we’re really looking for here is a move above or below, so there’s no trade just yet unless you’re willing to make a bet or selling premium (which could be dangerous)…
This is consolidating, however, we’ve got a number of things worth noting.
On the lower chart, the Stochastic of the Squeeze Trading Tool 1.2A is yellow and just as flat as the price action. This is important because it’s the part of the indicator that tends to precede share price movement.
As of now, it’s at -0.02 and over the zero line is where we want it; preferably green and pointing upward.
Using the histogram (green and red oscillator), FSLY is dark red and curling higher…
BUT… the Squeeze 4-Pack v8 is giving us the real scoop.
For the sake of clarity, I’ve boxed and highlighted how the histogram corresponds between the two indicators on the 20-period lookback. The others are the 5, 10, and 15.
The concern here is that histogram on the 5-period is now two dots into the red and all bright green dots on the 10 and 15 have flipped dark green to lose momentum.
If you wanted even more fuzz, note the spikes in Short Volume… The last time it went this high, the share price took an immediate dive.
This time? Nothing.
This could be accumulation for a move higher…
Early birds can make a move here, otherwise I’d watch the levels and trade it accordingly.
Keep moving,
(Disclosure: I hold no position in FSLY, but intend to initiate a position in the next 30 days.)
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