LRC Technical Analysis: Can Post-Retest Reversal Save LRC Prices?
Table of contents
Key Technical Points:
Past Performance of LRC
As mentioned in our previous article, the LRC price action exceeds the declining recent trend line but faces a higher price rejection from the $0.44 resistance level. The reversal rate tests the broken resistance trendline and struggles to regain any bullish momentum. Additionally, the increasing number of bearish and higher price rejection candles warns of a downfall under the $0.34 support level.
Source - Tradingview
LRC Technical Analysis
The LRC prices take resistance from the 50-day SMA and fabricate a double top pattern with the neckline at the $0.34 level. Hence the underlying bearishness is on the rise, which warns of a downtrend continuation.
The DMI indicator shows the DI lines maintain a positive alignment but struggle to increase the bullish spread. Meanwhile, the ADX line shows a sideways trend indicating a saturation in trend momentum.
The RSI indicator shows a sideways trend below the halfway line but continues to take support from the 14-day average line. Hence the path of the RSI slope gets narrower, which may shortly result in a momentum burst and decide the upcoming trend.
In a nutshell, the LRC technical analysis displays a lack of bullish momentum, which may lead the prices below the $0.34 support level.
Upcoming Trend
If the buyers manage to regain the trend momentum and surpass the 50-day SMA at $0.44, a price jump to the $0.57 resistance level seems inevitable. However, a likely possibility is a $0.34 fallout leading to a downtrend to $0.25.
Resistance Levels: $0.44 and $0.57
Support Levels: $0.34 and $0.25
