Gala (GALA) – Expected to extend its bearish cycle in the near future

Gala (GALA) – Expected to extend its bearish cycle in the near future

Posted on Tuesday, October 11 2022 at 8:29 pm GMT+0000

Gala (GALA) started the second week of October on the wrong foot, particularly with a strong dip from the tough resistance area linking the 20-day exponential moving average, the upper line of the regression channel stretched from the August 15th peak, and the mid-July bottom.

Technically, the sinking 20- and 55-day exponential moving averages are safeguarding the medium-term negative structure of lower tops and lower bottoms while the oscillators are suggesting that the bearish momentum has jump-started. The ROC nudged beneath its zero mark, while the stochastic completed a fresh bearish crossover within its %K and %D lines marginally above the 50 level. Additionally, the CCI dropped aggressively below the -100 threshold, promoting further price depreciation.

However, to upgrade the medium-term negative structure, the bears should secure a decisive close below 0.0385. By successfully doing so, they will initially eye the 161.8% Fibonacci extension level of the latest up-leg at 0.0358. If the latter proves easy to clear, the spotlight will turn towards the mid-regression line ahead of the 227.2% Fibonacci level at 0.0328.

On the other hand, if negative pressures wane and the price jumps above the upper bar of the channel and the nearby 20-day exponential moving average at 0.0416, the July 13th inside bottom of 0.0443 will come directly under examination. Stretching past this, the buyers will then advance confidently to the 0.0463 – 0.0467 area joining the September 7th low and the 55-day exponential moving average.

All in all, Gala is expected to extend its bearish cycle in the near future. A dive beneath 0.0385 will unleash an aggressive sell-off.