AR Technical Analysis: Will Buyers Win The Struggle Between EMAs?
Table of contents
Key Technical Points:
Past Performance of AR
As teased in our previous article, the AR prices break about the 50-day SMA to challenge the overhead resistance of the 100-day SMA close to $17.50. However, the buyers failed to exceed the opposing SMA resulting in a price fall to the $12 mark. Currently, the prices consolidate within the SMAs after the bullish reversal last night, accounting for a price jump of 17%.
Source - Tradingview
AR Technical Analysis
The recent bullish attempt to exceed the 100-day SMA fails as the prices take a bearish turnaround from the $15 mark. Hence, the likelihood of an uptrend continuation decreases with the increase in selling pressure.
As said, the prices continuing to consolidate within the SMA will provide a breakout opportunity shortly, which may result in a highly volatile spike in either direction.
The bullish reversal in the RSI slope faces opposition from the 14-day SMA, undermining the overnight increase in underlying bullishness. Furthermore, the MACD and signal lines maintain a bearish alignment as buyers struggle to bring another crossover event. Hence, the technical indicators support a bearish bias, increasing the likelihood of a downtrend continuation.
In a nutshell, the AR Technical Analysis suggests that buyers should wait for a price action confirmation while sellers can trade within the consolidation range.
Upcoming Trend
Considering that the wind pressure increases throughout the day, the AR prices will skyrocket above $15 to potentially test the overhead resistance of $18.
Conversely, the 50-Day SMA fallout will result in a price below the $10 mark.
Resistance Levels: $15 and $18
Support Levels: $12 and $10
