After two unsuccessful attempts to surpass the old high at approx. $12.50, initially, a stronger sell-off until under the 200 took place. After a further recovery, the next sell-off immediately took place with considerably higher , whereby even the lows from slightly further back were also significantly undercut. This was, at the same time, also the confirmation of the now-existing downward trend, which is currently in a correction. If the technical counter-movement continues to last, this would result in a downward potential in the short direction with up to 50%.
In the hourly chart we can see the currently running correction, which has yet to develop in our preferred trading direction. For a short entry, we should wait for the formation of a signal, e.g. in the form of a new low, and place the stop loss above the last high. Alternatively, and with the advantage of a more favorable stop, one can also practice trading out of the correction or the formation of a reversal candle at a significant point.
The targets are located in the areas around $8.35 and lower (see green zone in the ), which makes the stock even more attractive for short entries.
If the price clearly exceeds the last significant high at approx. $11.30, we should abandon the short scenario for the time being ( depicted in red). Before trading, one should take news in the environment and from the company into account. Similarly, one should also observe the development of the overall market.