All articles tagged with #downtrend
Shares of CVS Health Corporation are trading lower, potentially breaking a crucial support level at $52.50, which has held since 2019. This break could signal the start of a new downtrend as sellers dominate the market. The concept of 'market memory' suggests that this level has been significant for years, and its breach may lead to further price declines.
The price of natural gas took a bearish turn, opening the week with a significant gap down and breaking through support levels, signaling downside pressure with a series of lower swing highs. The breakdown of a falling parallel channel and a bearish monthly breakdown further support the bearish view, as today's decline surpassed last month's low, indicating a potential shift in the market.
Natural gas triggers a breakout above last week's high, indicating potential strength, but a retracement into last week's range is likely before a continuation higher. The downtrend remains intact, marked by the declining internal trendline and 20-Day MA. A test of resistance at 2.88 is anticipated, which could provide a significant level for the market.
Tesla's stock briefly tested a key chart level before pulling back, indicating that the downtrend that has kept bears in control for the past four months remains intact. However, there are early signs suggesting another test is imminent, and there is optimism that bulls may succeed next time. The stock has made progress on a medium-term uptrend, but it still needs to overcome a longer-term downtrend line. Despite recent losses, Tesla's stock has seen significant gains this year, outperforming the Nasdaq-100 Index and the S&P 500 index.
The possibility of a downtrend in interest rates is becoming more likely as recent market movements and a shift in tone from the Federal Reserve suggest a potential rate reversal. While it is still early to confirm a new trend, upcoming economic data will play a crucial role in determining the direction of rates.
Tesla's stock has risen above the 200-day moving average, signaling a potential uptrend resumption. However, the bigger trend for the stock is still downward, and there are significant resistance levels ahead. To truly break the two-year downtrend, Tesla would need to close above $295 and sustain those gains. Currently, a further rally of at least 34% is required for that to happen. Despite recent volatility, Tesla's stock has gained 78.6% year-to-date.
Tesla's stock dropped 3.2% and fell below its 200-day moving average (200-DMA) for the first time since May 26, indicating a potential longer-term downtrend. The decline follows disappointing earnings and a three-day losing streak, with the stock on track for its worst three-day performance since December 2022. The stock is currently trading within an important support zone between the 200-DMA and $208. Over the past three months, Tesla's stock has shed a significant percentage while the S&P 500 has also experienced losses.
Bitcoin, Ethereum, and Dogecoin are trending lower, but Ethereum and Dogecoin may be set to bounce back as they trade on lower-than-average volume and work to print hammer candlesticks. Traders and investors can watch the crypto sector over the weekend to gather information on how the stock market will open on Monday. Bitcoin broke down bearishly from a triangle pattern on May 8, which set the crypto into a downtrend. Ethereum entered a downtrend on May 6, while Dogecoin confirmed a new downtrend on Wednesday.