Civic (CVC) – Expected to keep attracting selling interestPosted on Thursday, May 5 2022 at 8:12 pm GMT+0000
Civic’s (CVC) recent recovery attempt fell apart around the tough lower-line of the regression channel stretched from the January 24th low, and the price reversed harshly towards the key 0.243 support barrier.
The falling 100- and 200-day exponential moving averages are sponsoring the bearish outlook while signals from the oscillators are still clearly discouraging. The KST is drifting lower a tad below its signal line in the negative territory and the RSI turned lower below its 50-neutral mark.
The price now entered a familiar support zone around the 0.243 bottom, which motivated the impressive March rally. Should it fail to mute negative forces this time, the price will then dip to the 0.207 – 0.190 support region, shaped by the January and February lows, where any violation will trigger a more aggressive decline.
Otherwise, if the aforementioned support barrier proved once again strong enough for an upside reversal, bulls will need to generate sufficient traction to overshoot the lower-line of the channel. However, within a breathing distance, the 100-day exponential moving average at 0.304 would act as another upside constraint, ahead of the April 23rd high of 0.325, overlapping with the 200-day exponential moving average. From here, to bolster the necessary upside momentum and propel to April’s high of 0.429, the bulls will have to conquer the middle line of the channel.
To summarize, Civic will likely keep attracting selling interest in the coming sessions, especially if it drops below 0.243. Only a jump beyond the moving averages could motivate a relief rally.