SNX Technical Analysis: Retest Phase Warns A 30% Fall

Key technical points:

Past Performance of SNX

SNX price action shows the buyers failing to sustain the price above $2.35, as mentioned in our previous article, after the fallout of the 50-day SMA. However, the sellers struggle to get a follow-through under $2.35 as the price action teases a morning star pattern to retest the bearish fallout. Moreover, the possibility of the morning star failing to propel the price is high as the reversal pattern is not forming at a crucial support level.

Source- Tradingview

SNX Technical Analysis 

SNX prices showcase the falling trend in the trading volume during the retest, increasing the likelihood of a bearish continuation. Hence, traders can expect the price to decline to the bottom support of the $1.50 mark. The MACD and signal lines showcase a bearish crossover after a rounding reversal from the zero line leading to a fresh trend of negative histograms. Hence, the indicator showcases a rise in the underlying selling pressure.

However, the RSI indicator shows the slope recovering after dipping under the 14-day SMA in the nearly oversold zone. Hence, the indicator shows an opportunity for buyers to reverse the trend. In a nutshell, the SNX technical analysis projects a retest phase with a high possibility of a downtrend continuation.

Upcoming Trend

The overall sentiment for the upcoming trend in the SNX price remains highly bearish and projects a downfall shortly. Hence, traders can expect the post-retest reversal rally to reach the $1.50 mark.

Resistance Levels: $2.35 and $3

Support Levels: $2 and $1.50