Flux (FLUX) – Bears looking to extend the medium-term negative coursePosted on Wednesday, November 2 2022 at 9:00 pm GMT+0000
After a brief recovery, Flux (FLUX) bears are making a comeback and seem insisting on extending the medium-term negative course.
The falling 20- and 50-day simple moving averages are still backing the broad downtrend, while the oscillators are suggesting that negative momentum has jump-started. Specifically, the RSI has turned lower below its 50-neutral mark, and the Stochastics %K slipped dramatically below the %D line and the equilibrium level.
Flux lately lost the fight with the 2/1 Gann fan angle stretched from the September 6th top and appears heading for a retest of the October 13th low at 0.617. Any significant penetration here will ignite a steeper decline toward the 0.542 barrier taken from May’s bottom. Further lower, the spotlight will turn to the 0.400 – 0.380 support band molded by the summer lows.
Otherwise, if buyers start to push back, they may once again get congested near the 2/1 Gann fan angle and the 50-day simple moving average just ahead of the 0.827 – 0.864 zone joining October highs. Not too much higher, they will exchange swords with the 3/1 Gann fan angle located near the 0.990 congested area. Another victory at this point will accelerate the rally towards the August 28th inside high at 1.105.
All in all, Flux continues to exhibit a strong negative bearing, and a daily close below 0.617 will reinforce the negative momentum. Only a jump over 0.864 could ease bearish concerns.