NVAX has been making lower lows since 1998, and price is currently falling towards the descending angle. (orange circles)
Will it touch it again? If price falls below $3 it will.
Looking at the big picture, every time NVAX touched this declining trend line, price went parabolic.
How high could price go?
Look at the purple channel. Price either peaked at the bottom or the top of the parallel channel. (white circles)
It took about six months to three years to go from the bottom of the descending angle to its blow off top. And it saw gains between 10 - 70X.
Where would price retrace to after the blow off top?
Look at the yellow parallel channel. Price retraced to the top of the channel, and eventually fell into this channel, bouncing within this range.
Prices could never find support on the bottom of the channel, and broke below, falling to the descending angle and creating another lower low.
The only exception was in 2012, where price was able to break back out of the channel and reached a blow off top in 2015.
Watch the 21 EMA. (blue moving average) If price bounces off the descending angle, in the future watch when it breaks above the 21 EMA. If price can find support on top of the 21 EMA, it should carry price to its blow off top.
Does a touch of the descending angle guarantee a bounce up to its blow off top in the purple channel?
No. But looking at the history of NVAX, it has done this 4 times since 1998.
Could price touch the descending angle, and fall way lower?
Sure can. $3.54 is NVAXs all time low. Breaking below this price, which it would if it touched the descending angle, would mean there's no support left to prevent price from falling to the pennies. I'm not saying this would happen, but it's possible, especially when price enters unchartered all time lows.
Will it touch it again? If price falls below $3 it will.
Looking at the big picture, every time NVAX touched this declining trend line, price went parabolic.
How high could price go?
Look at the purple channel. Price either peaked at the bottom or the top of the parallel channel. (white circles)
It took about six months to three years to go from the bottom of the descending angle to its blow off top. And it saw gains between 10 - 70X.
Where would price retrace to after the blow off top?
Look at the yellow parallel channel. Price retraced to the top of the channel, and eventually fell into this channel, bouncing within this range.
Prices could never find support on the bottom of the channel, and broke below, falling to the descending angle and creating another lower low.
The only exception was in 2012, where price was able to break back out of the channel and reached a blow off top in 2015.
Watch the 21 EMA. (blue moving average) If price bounces off the descending angle, in the future watch when it breaks above the 21 EMA. If price can find support on top of the 21 EMA, it should carry price to its blow off top.
Does a touch of the descending angle guarantee a bounce up to its blow off top in the purple channel?
No. But looking at the history of NVAX, it has done this 4 times since 1998.
Could price touch the descending angle, and fall way lower?
Sure can. $3.54 is NVAXs all time low. Breaking below this price, which it would if it touched the descending angle, would mean there's no support left to prevent price from falling to the pennies. I'm not saying this would happen, but it's possible, especially when price enters unchartered all time lows.