SNX Technical Analysis: Bears Hijack Wedge, Threaten 10% Drop
Table of contents
Key Technical Points:
Past Performance of SNX
The SNX price action shows a bearish reversal from the $4.38 to the $3.5 support level within a rising wedge, indicating the completion of the bear cycle. The downtrend wiggles up and down the 200-day SMA while forming the double top pattern with a neckline at the $3.5 mark. However, the support trendline of the rising wedge pattern cushions the downfall leading to lower price rejection candles.
Source - Tradingview
SNX Technical Analysis
The SNX price retests the broken 200-day SMA, leading to the higher price rejection in the daily candle. Hence, the increasing downtrend momentum teases a downfall below the support trendline and a drop below the $3.5 mark. The recent bullish crossover of the 50 and 100-day SMA gains a bullish spread despite the bear cycle within the wedge.
The daily RSI slope drops to the halfway line, crossing below the 14-day SMA, reflecting a rise in the underlying bearishness. Moreover, the MACD indicator shows the increased selling pressure undermining the bull cycle with a bearish crossover.
In summary, the SNX Technical Analysis displays a high likelihood of a downtrend breaking below the rising wedge pattern.
Upcoming Trend
The increasing selling pressure may push the SNX prices below the support trendline resulting in the $3.5 breakout. Moreover, the breakout rally can reach the crucial support level at the $3 mark.
On the contrary, the bullish reversal within the wedge will hit the resistance trendline at the $5 mark.
Resistance Levels: $4.5 and $5
Support Levels: $3.5 and $3