2 2 correctly predicted forecasts
Send me real-time posts from this site at my email
Fan Yang

Apollo Endosurgery (APEN) Officially in a Bearish Breakout

Apollo Endosurgery $APEN has been consolidating and challenging the bullish outlook. In the past few sessions, it has clearly broken below some key support factors and is likely going to fall further.

APEN Daily Chart

(click to enlarge)

Bull's Lose Momentum:
- The daily chart shows how price action has been bullish since late 2017. 
- However, after failing to clear above $9.55 in July and August of 2018, price started to retreat.
- When price started to break below $7.00, APEN started to consolidate. 
- The RSI dipping below 40 indicated that bulls have lost the momentum. 
Bearish Breakout:
- During this time, I noted that a hold above $6.50 and ability o clear above $7.00 should keep APEN on the bullish mode
- For a couple of weeks, price was able to hold above $6.50 and did climb above $7.00 a few times. 
- However, we can see that the market immediately sold when price was above $7.00, making it a failed breakout.
- Instead, price eventually broke below $6.50 and the rising trendline. This week, we also saw a bullish attempt being rejected.
- These are signs that bears have won out and APEN is likely in for a dip at least to the $5.40-$5.70 support area.
- A break below $5.40 then would open up $4.00, as well as the 2017 low around $3.60. 
- At this point, the $6.50-$7.00 area will likely turn into resistance. In fact, if we get another rebound and price does retreat from this resistance area, we can have more confidence of the bearish outlook.