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- Novonix stock price is in a downtrend due to the head and shoulders pattern.
- The bears are targeting the $1.0 level before the end of fiscal 2022.
So far, the share price of Novonix is showing under selling pressure. Despite the healthy market conditions, traders have a bearish outlook on NVX stock due to some hidden signals and price formations.
In terms of third quarter results, the net income dropped by a whopping 482% and resulted in a loss of -$21.30 million. Revenue on the ASX, on the other hand, rose by $2.2 million: The Novonix stock hasn’t done enough to contribute to the recovery.
Weekly Graph of Novonix Stock Price Shows Sellers Dominance
Novonix stock price reached below the $2.0 mark, and was an important rescue area. However, if the price recovers further then it becomes a hindrance to the immediate upside. Unfortunately, the chances of a sharp bullish rally are slim as the next round level of $1.0 is close to the current trading price, so the bears may consider short-covering this support level.
On the weekly chart, short-sellers dumped NVX stock after April due to a head and shoulders pattern. This was a major bearish signal, resulting in more selling by the buyers so far. In the paper dated December 22, Novonix share price was trading in the green and closed at $1.625 mark with a gain of 3.17%.
Trading volumes picked up amidst continued selling, in fact on 21st December the volumes reached their highest peak in the last 30 days. Last night was extremely volatile as the daily price candle shows a long legged doji candle and trades should wait until the previous candle breaks or breaks before taking any major trades.
The conceptual round level of $1.0 is seen as the next support level when sellers are getting ready to dump Novonix stock price into the $2.0 resistance area. Furthermore, the weekly RSI indicator is yet to meet the oversold zone, so buyers should be on the lookout for another decline ahead.
Conclusion
Global markets seem to be stable for short term trading right now. Moreover, Novonix share price looks extremely bearish after witnessing a head and shoulders pattern in a higher time frame. The RSI also shows another decline in the price which could take the asset towards the $1.0 mark.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
