SNX Technical Analysis: Will Buyers Sustain $2.35 Stronghold?
Table of contents
Key technical points:
Past Performance of SNX
SNX price action revealed an extended correction period beneath a bearish trendline that accounted for an 80% decline. The downward trend had reduced the market value from $7.80 to $1.50 within three months. But, the rebound from $1.50 surpasses the selling tension of the resistance trendline but the sellers stifle the bullish momentum at $3.5.
Source- Tradingview
SNX Technical Analysis
The higher price rejection led to a downfall in the SNX price action near the $3.50 mark. The bullish recovery last night helps the candle sustain above $2.35 and the buying pressure helps in further growth. Hence, the possibility of a morning star pattern forming at $2.35 increases sharply along with the trend reversal possibility. In terms of the technical indicators, the DMI displays the DI lines giving a bullish crossover as the ADX continues to fall. However, the MACD and signal lines go sideways close to the zero line while maintaining a positive alignment. Moreover, the falling trend in the bullish histograms reflects weakness in the underlying bullish.
The RSI indicator shows the sope retracing the bullish steps after sustaining above the 14-day SMA. Hence, the indicators maintain an overall bullish point of view, if we neglect the MACD indications. In short, the SNX technical analysis shows a higher likelihood of buyers regaining trend control to avoid a downfall below $2.35.
Upcoming Trend
If SNX price action forms a reversal pattern near the $2.35 mark, a jump to $3.5 is highly likely with the support of increased trading volume.
Resistance Levels: $3.5 and $5
Support Levels: $2.35 and $1.50