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making a very impressive rally higher here we have posted some near-term lows after a very steep descent previously but the current price action is showing 16319 is the current price level and this is a very substantial reversal here from these 12850 lows which we posted during the August 5 trading session so as we can see here we really do need to take a step back a bit and make a better assessment of what actually has gone on here because there is a severe amount of damage that has been done to this price chart as we can see in this descent lower we essentially broke through every major Fibonacci support Zone as well as every majose stock had a tremendous amount of selling pressure that was focused on it previously and this does suggest that investors could be a bit cautious here going forward due to the fact that similar types of circumstances could occur once again so if we're looking at the current the current price action we can see that this recent move higher we've seen a little bit of a price Gap here this is the 4-Hour chart so it's not exactly a a short-term time frame and this does show a bit of gapping activity so if you know if we were to pull down to the 15-minute chart you would see a bit more of a price Gap here but we're going to stay on the 4our chart for for the moment because we do need to take a longer term assessment given the fact that so much damage was done to the Chart previously so as we can see here we are currently trading above the prior resistance Zone at 16130 which was posted during the July 31 trading session most of this activity currently is coming as a result of the fact that share prices have gapped higher so this is a little bit of a volle volatile moment here as we can see previously you know the prior two uh trading periods here and the previous close for the prior trading period both came in below this 160 130 level as we started this trading session we did see a gap higher so this does tell us that markets were attempting to make this lower close but as prices you know as we return to trading today market prices were forced above this area and we did see a surge higher the main issue that I have with this movement and this price Gap is simply the fact that trading volumes here are continuing to diminish which is a little bit surprising I think that what we're starting to see here is a bit of profit taking within this shorter term rally that we're seeing so I do think that this warrants a bit of caution at current levels it is very significant that we have broken Above This 16130 level this is a very major area of resistance and then in addition to that as you can see here the share price is now trading well above its entire exponential moving average cluster in addition to that if we drill in here a bit we can see that all four of the major moving averages here are pointed in the upward Direction the blue line here the 200 period exponential moving average does look a bit flat this isn't a very impressive slope in the upward Direction but we can start to see shorter term moving averages that do look much more impressive in nature specifically we can look at this yellow line here which is the 20 period exponential moving average on the 4our chart and then in addition to that the the 50 period exponential moving average is clearly Crossing above the 100 period EMA which is the purple line so there are some positive signals here but one thing that really to me kind of flashes a warning signal here is is the fact that trading volumes are starting to diminish not not not totally something that you would expect here given the fact that the stock is posting such a strong reversal higher you might think you know normally you might think that the stock is reversing because people are starting to buy in at these prior lows right around 130 this was a major low previously we did actually see a break to the downside and I do want to talk about that in a moment but one thing that that does concern me about this recent rally is the fact that trading volumes are really not confirming these upper levels here in addition to that you've also got an a relative strength index reading on this time frame which is starting to move we're trading at roughly this would be roughly 65 in the relative strength index on the 4our price chart so we're not exactly overbought just yet and this does suggest that we could continue to move higher but overall this is starting to look a bit overextended and I really don't like the fact that trading volumes here are starting to diminish so to me what this really points to is profit taking within this shorter term price move higher so at the very least I think that we could start to see a period of consolidation and we're now at risk of filling this this Gap here to the downside given the fact that the stock posted this higher open and we now have we now have a price Gap here uh that is that is showing on the charts this is not you know this is not a huge price gap on on the 4our time frame you know we're looking at roughly $2 in in gapping activity here so it's not a huge it's not a huge price Gap but the risk here is that you know if we do start to see prices move back into this territory that this price Gap is going to need to be filled and then this could halt some of the positive momentum that we're currently seeing so yes this is a very strong move to the top side it it shows a very strong reversal Point here from this prior move lower as we can see here this was a very substantial move lower and we actually broke below these prior lows I I do need to address that as well because this 12850 level which posted during the August 5 trading session is below the prior lows which were posted during the beginning of June 2024 so this is a very significant break lower but I would have to consider this to be a false breakout to the downside because we did see such a strong reversal Point uh that followed and specifically you have to point to the fact that resistance levels right around 14950 were also broken so if you see a major reversal like this and a break of Prior resistance zones you do have to start to consider these moves to the downside as being a false breakout to the downside so you know anybody that's adopting sort of a a breakout type of strategy where you sell breaks of support or buy breaks of resistance uh this is an example where that type of strategy would not have worked this strategy would have been stopped out very quickly anybody that's buying in at roughly 129 or right around there because you know we can say that you know 130 broke uh that that position would have been underwater very quickly breakout strategies do work often uh there's nothing wrong with with adopting that type of strategy but as we can see here this would be an example where a very tight stop loss would have been needed in order to avoid losses so as things currently stand we're going to have to start to you know in our in our next assessments of this stock we're going to have to start to assess this most recent price move to the top side this is going to start to become the most dominant uh bull wave here and the most dominant Trend action so in the following videos we will be looking more closely and more in depth at this at this recent Trend movement higher ]
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