PATH – A New Leg Up?
1. The price traded sideways from early February through early August, forming a base. On August 4, it broke out of this base, marking a successful Base breakout.
2. Looking at the entire upward move, we can see that the stock delivered a strong 85% rally (A).
3. However, starting in early September, the price began to decline following an earnings gap, eventually pulling back to the top of the previous base. This level previously acted as resistance and could now potentially serve as support.
4. I believe there is a chance for the price to move higher, as it is currently trading within a support area. In addition, a breakdown pattern formed slightly above this area, but it appears to have resulted in a false breakdown. A smaller Mini Bull Flag formation has also developed (B).
5. If the price breaks out of this formation (B) with relative strength, a move toward the $18.50 area could be possible.
6. The main negative factor is the weekly chart, where the price is moving sideways rather than trending upward. If the weekly timeframe were in an uptrend, the probability of a successful move higher would be greater.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.