In a dramatic turn of events, Moonpig has experienced a staggering 33.91% correction, thrusting its price towards a pivotal inflection point near the local range low. As traders brace for potential volatility, this sharp pullback has raised questions about whether the market has finally reached a bottom.
The present trading range of Moonpig spans over 166%, indicating significant market fluctuation ahead. Investors are eagerly watching this critical juncture, which could trigger a liquidity grab or a swing failure pattern often utilized by seasoned traders. What does this mean for the future of Moonpig?
- Range Low Liquidity Zone: Currently, the price hovers above the local range low, presenting a potential bullish swing failure pattern (SFP) if liquidity is swept.
- Point of Control Resistance: Historically, the point of control has acted as a formidable resistance barrier. A successful breach above this level could set up a bullish grind towards the range high.
- Fibonacci Extension Target: Should the range high be surpassed with momentum, projections suggest a price target of over 390% increase.
The recent 33% decline has drawn Moonpig closer to the bottom of its defined trading range. If the current local low is taken out, traders might witness a classic swing failure pattern. This scenario could serve as a strategic entry point for those looking to capitalize on potential upward movement.
At present, the market lacks a bullish structure, remaining trapped in a rotational price action pattern. Until a significant structural change occurs, traders should anticipate continuous range-bound activity. The point of control remains below the range high and is a critical area of focus; hence, reclaiming this level could significantly bolster the chances for an uptrend.
Moreover, a breakout beyond the range high could lead to an impressive price surge, targeting Fibonacci extension levels that exceed a 390% increase from current values. However, until such a breakthrough is witnessed, traders should brace for expected volatility while favoring mean-reversion strategies.
As Moonpig continues to consolidate, traders should remain vigilant. A sweep of the current range low and a subsequent reclaim could signal the long-awaited structural shift and a bullish turnaround. Close attention to SFP confirmation and the reclaiming of the point of control will be essential to validate any upside potential. In the absence of these signals, it is likely that price action will continue to be rotational within the established range.
