Sandbox (SAND) – Expected to come under renewed selling pressure

Sandbox (SAND) – Expected to come under renewed selling pressure

Posted on Thursday, February 3 2022 at 9:18 pm GMT+0000

Sandbox (SAND) barely conquered the January 30th intraday high at 4.08 and reversed aggressively lower to breach the ascending trendline pulled from the last week’s bottom and the 3.64 low, fulfilling a bull trap reversal pattern on the four-hour chart.

Glancing at the short-term momentum oscillators, they are revealing a rise in selling sentiment as the MACD is falling beneath its signal line and just pivoted to the negative region, while the TSI is heading south below its signal line. When it comes to volume, the fact that OBV dropped below its ascending trendline signifies that bears have regained full control.

Noteworthy is the expansion in the Bollinger bands, which is sponsoring the surge in volatility suggesting that a larger downward movement may evolve.

Sellers are in the meantime expected to push efforts to depreciate the price initially towards the 161.8% Fibonacci extension level of the January 31st upward swing at 3.29 before considering the target of the formation at 3.00. By slicing through that psychological barrier, they will immediately eye the 2.74 level being the 261.8% Fibonacci level.

Alternatively, an improvement in sentiment could lift the price initially towards the mid-Bollinger band around 3.90 and the dashed trendline. Gaining more traction, bulls will likely challenge the last Monday’s high at 4.17 and the adjacent upper-Bollinger band, where any violation will invalidate the bearish pattern.

In brief, Sandbox is expected to come under renewed selling pressure in the short-term following the confirmation of the bull trap reversal pattern.