Bird Global, Inc (NYSE:BRDS) soared over 12% higher Nov. 1. The sharp rise in the stock ended up being a bull trap and since the date, Bird Global has plummeted over 36% to a new all-time low of $7.10.
- On Wednesday, Bird Global was settling into an inside bar pattern on the daily chart. The pattern is considered bearish because the stock was trading lower prior to the formation being created.
- Bears can watch for a break down from Tuesday’s mother bar, on high volume, for confirmation the pattern was recognized.
- The stock’s relative strength index (RSI) is measuring in at about 22%. When a stock’s RSI reaches or exceeds the 30% level it becomes oversold, which can be a buy signal for technical traders. It should be noted, however, that the RSI can remain extended for long periods of time.
- Bulls looking to take a position could watch for a bullish signal, beginning with a trend change on lower timeframes on high volume.
- The only support in the form of price history is at the all-time low. Resistance above can be found using the hourly-chart which indicates there is resistance at $7.47 and $7.99.
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