Good Morning, and welcome to my first analysis that is NOT a cryptocurrency!
Today we will be analyzing Anthersys ( ATHX ).
ATHX has had a rough time recently and after hitting a 52 week high of $2.63 in September of 2017 it has dropped roughly 45%.
Lets take a look at the chart. The first thing we can see is that we are obviously in a downward channel and we have been since mid Sep. 2017. I have drawn two support levels and 2 resistances levels to highlight entrance and exit points for the short term. If you notice we have hovered around "Support 1" since 2/14 and just yesterday we broke above this support and closed the day above it. We see a few powerful indicators in the DMI chart which shows the +DM is about to cross the -DM all while the ADX (the true strength indicator) is way above our signal line of 25 which suggest we are in a strong trend. The directional movement is touching and if these cross this is a good buy signal.
The next thing to notice is the RSI. We are also trending up and seeing higher lows since 2/14. We can see that on 3/2 we hit a low point all while the RSI was still trending up. The RSI tends to fluctuate between 10 and 60 in a bear market (downtrend) with the 50-60 zone acting as resistance. On the flip side RSI tends fluctuate between 40 and 90 in a bear market (uptrend) with the 40-50 zone acting a support. Right now we are almost at 60 which again could show we are breaking out of the down trend. IF we can see the 40-50 zone hold as support this will be a good indication that we are indeed showing a bullish support and should see a good push up to the resistance 1 or even resistance 2 levels.
If you notice, my upward tend line on the RSI meets the red highlighted section on the RSI. The red highlighted section is the support zone between 40-50 to indicate if we are supporting a bearish or bullish trend. If the RSI drops below this support and the DMI crosses back over this would show a false breakout and we could definitely drop further down. However, all signs at the moment are showing a bullish trend could be on the brink.
Lets pay close attention to the next few days to see if we can break the 1st resistance level and out of the downward channel. We need to see a confirmed break out and see a close above this resistance 1 level to show and indicate upward strength.
A good entry point would be a dip that touches the support line with a buy around $1.41 and setting a stop loss set below the support line. This would minimize loss if we were to drop further. A bounce off this support 1 line could rally us up to break the resistance 1 level, that is if all other indicators hold as pointed out above.
All in all, the chart is showing positive signs as we speak which could mean good things to come at least for the short term, but remember we are still in a DOWNWARD channel so we need to see a break out of this to really confirm upward movement.
Anthersys is to post quarterly earnings tomorrow on 3/7, this could also be an indicator of future movements depending on the report.
Any and all comments are welcome!
Happy Trading :)
Much Love
DustyPH
***This information is not a recommendation to buy or sell***
Today we will be analyzing Anthersys ( ATHX ).
ATHX has had a rough time recently and after hitting a 52 week high of $2.63 in September of 2017 it has dropped roughly 45%.
Lets take a look at the chart. The first thing we can see is that we are obviously in a downward channel and we have been since mid Sep. 2017. I have drawn two support levels and 2 resistances levels to highlight entrance and exit points for the short term. If you notice we have hovered around "Support 1" since 2/14 and just yesterday we broke above this support and closed the day above it. We see a few powerful indicators in the DMI chart which shows the +DM is about to cross the -DM all while the ADX (the true strength indicator) is way above our signal line of 25 which suggest we are in a strong trend. The directional movement is touching and if these cross this is a good buy signal.
The next thing to notice is the RSI. We are also trending up and seeing higher lows since 2/14. We can see that on 3/2 we hit a low point all while the RSI was still trending up. The RSI tends to fluctuate between 10 and 60 in a bear market (downtrend) with the 50-60 zone acting as resistance. On the flip side RSI tends fluctuate between 40 and 90 in a bear market (uptrend) with the 40-50 zone acting a support. Right now we are almost at 60 which again could show we are breaking out of the down trend. IF we can see the 40-50 zone hold as support this will be a good indication that we are indeed showing a bullish support and should see a good push up to the resistance 1 or even resistance 2 levels.
If you notice, my upward tend line on the RSI meets the red highlighted section on the RSI. The red highlighted section is the support zone between 40-50 to indicate if we are supporting a bearish or bullish trend. If the RSI drops below this support and the DMI crosses back over this would show a false breakout and we could definitely drop further down. However, all signs at the moment are showing a bullish trend could be on the brink.
Lets pay close attention to the next few days to see if we can break the 1st resistance level and out of the downward channel. We need to see a confirmed break out and see a close above this resistance 1 level to show and indicate upward strength.
A good entry point would be a dip that touches the support line with a buy around $1.41 and setting a stop loss set below the support line. This would minimize loss if we were to drop further. A bounce off this support 1 line could rally us up to break the resistance 1 level, that is if all other indicators hold as pointed out above.
All in all, the chart is showing positive signs as we speak which could mean good things to come at least for the short term, but remember we are still in a DOWNWARD channel so we need to see a break out of this to really confirm upward movement.
Anthersys is to post quarterly earnings tomorrow on 3/7, this could also be an indicator of future movements depending on the report.
Any and all comments are welcome!
Happy Trading :)
Much Love
DustyPH
***This information is not a recommendation to buy or sell***
Comment:
So we never dropped down to the support line after my post, BUT I gave you the call we we're on the brink of a breakout and a bullish trend... Up over 20% since my post!!!
Comment:
Looks like our next resistance is around $2.06