GAS Technical Analysis: Rising Channel Struggles To Float Above $3
Table of contents
Key technical points:
Past Performance of GAS
The GAS prices crumble after the bullish failure to rise above the $6.25 mark, resulting in a bearish month(April). The downfall took support on the psychological mark of $2 on 12th May, resulting in a quick reversal within a rising channel pattern. The recovery inflates the market value by 50% within a month but shows higher price rejection candles near the $3 mark.
Source- Tradingview
GAS Technical Analysis
The bullish struggles to keep the GAS prices buoyant above the $3 mark are evident by the higher price rejection candles. Hence, traders eyeing a bearish reversal can find a selling spot with a candle closing below the support trendline. The crucial SMAs: 50(red), 100(orange), and 200(black)-days maintains a bearish alignment and show no sign of losing the bearish momentum. Moreover, the 50-day SMA acts as a resistance to the bullish growth within the channel.
The MACD and signal lines display an uptrend taking a lateral shift below the zero line as the intensity of the bullish histogram decreases. Hence, the MACD indicator signals a high likelihood of a trend reversal. Moreover, the RSI indicator indicates a struggling uptrend creeping under the confluence of the halfway line and the 14-day SMA. In a nutshell, the GAS technical analysis forecasts a bearish trend reversal as the selling pressure at $3 takes a toll on the buying spree.
Upcoming Trend
The increasing number of higher price rejection candles within the rising channel warns of a downfall, a sharp V-shaped turnaround from the $3 mark. Sellers can drive the downfall to the $2.50 mark if a candle closes below the support trendline.
Resistance Levels: $3 and $3.30
Support Levels: $2.50 and $2.75