ARM: Approaching an inflection point. | 1H & D Chart Analysis |
On the 1-hour chart, the price is moving within an ascending channel, marked by the two purple trendlines. The price has been consistently making higher highs and higher lows, indicating a strong short-term uptrend.
However, it’s currently approaching the lower boundary of the channel, which coincides with the 21-hour EMA. This area could act as double support, and a bounce from here might lead to another attempt to reach the upper boundary of the channel.
If the price breaks below the channel, it could signal a short-term reversal, leading to a potential test of the recent low around $97.76, which is its most important support level.
On the daily chart, after a significant drop, the price has started to recover. The 21-day EMA is still sloping downward, indicating that the broader trend might still be under pressure. What's more, thihs 21 EMA is acting as a resistance level for ARM, as it failed to break it last week.
Could ARM reverse the mid-term bearish sentiment? Yes, but it needs to break the 21 EMA (D) asap. If the price stays inside the ascending channel observed on the 1h chart, even better.
By turning bullish, the open gaps (yellow squares) will become our next targets.
Summary
Support Levels: Watch the lower boundary of the channel on the 1-hour chart.
Resistance Levels: The immediate resistance is at 21 EMA on the daily chart, with the upper boundary of the channel on the 1-hour chart also acting as a potential resistance.
We should be cautious of a break below the ascending channel, as it could indicate a short-term reversal, while a sustained move above 21 EMA on the daily chart could suggest a more prolonged recovery.
For more detailed technical analyses and insights like this, be sure to follow my account. Your support helps me continue providing valuable content to help you make informed trading decisions.
Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.
“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore
All the best,
Nathan.
However, it’s currently approaching the lower boundary of the channel, which coincides with the 21-hour EMA. This area could act as double support, and a bounce from here might lead to another attempt to reach the upper boundary of the channel.
If the price breaks below the channel, it could signal a short-term reversal, leading to a potential test of the recent low around $97.76, which is its most important support level.
On the daily chart, after a significant drop, the price has started to recover. The 21-day EMA is still sloping downward, indicating that the broader trend might still be under pressure. What's more, thihs 21 EMA is acting as a resistance level for ARM, as it failed to break it last week.
Could ARM reverse the mid-term bearish sentiment? Yes, but it needs to break the 21 EMA (D) asap. If the price stays inside the ascending channel observed on the 1h chart, even better.
By turning bullish, the open gaps (yellow squares) will become our next targets.
Summary
Support Levels: Watch the lower boundary of the channel on the 1-hour chart.
Resistance Levels: The immediate resistance is at 21 EMA on the daily chart, with the upper boundary of the channel on the 1-hour chart also acting as a potential resistance.
We should be cautious of a break below the ascending channel, as it could indicate a short-term reversal, while a sustained move above 21 EMA on the daily chart could suggest a more prolonged recovery.
For more detailed technical analyses and insights like this, be sure to follow my account. Your support helps me continue providing valuable content to help you make informed trading decisions.
Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.
“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore
All the best,
Nathan.
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