AR Technical Analysis: Breakout Rally Struggles To Exceed $12.65
Table of contents
Key technical points:
Past Performance of AR
The AR price action showcased a downward trend in May, leading to multiple lower low formations, eventually generating a resistance trendline. However, the double bottom pattern at $7.75 in July led to the bullish breakout of the resistance trendline. Nonetheless, the breakout rally struggles to sustain above the 50-day EMA and exceed the selling pressure at $12.65.
Source- Tradingview
AR Technical Analysis
The AR price shows a diagonal bearish trend moving closely with the 50-day EMA teasing a potential crash below the $10 mark. However, traders must wait for a price action confirmation to avoid reversal traps. The MACD indicator shows the fast and slow lines crossing above the zero line, but the falling trend in the positive histograms teases a bearish crossover. Hence the technical indicator begs the traders to wait for a price action confirmation.
The stochastic RSI indicator shows a retracement to the overbought boundary by the K and D lines representing a new bear cycle. In a nutshell, the AR technical analysis warns of a bearish retracement as technical indicators reflect a weakness in the underlying bullishness.
Upcoming Trend
If the sellers overtake the trend control, the AR prices will drop under the psychological mark of $10. However, if the prices exceed the $12.65 resistance level and sustain above the average line, a price jump to $18 is possible.
Resistance Levels: $12.65 and $18
Support Levels: $10 and $7.75