MVIS - Signs of a possible bullish reversal
Split Screens.
Right chart: Monthly Fibonacci Retracement.
MVIS has retraced down to a local low of $1.15, and bounced off the 0.618 golden pocket.
Will the 0.618 hold as support? The month hasn't ended yet, so we will need to wait and see.
In the big picture it looks like this could be the end of wave 2 of the Elliot Wave.
In Elliot Wave Theory, wave 2 is a pullback to the 0.5 - 0.618 of the Fibonacci, which MVIS has done so far.
If my guess is correct and this is the end of wave 2, then wave 3 would be next.
Wave 3 of Elliot Wave is a parabolic rise up. It's never the shortest wave and is usually the longest.
Left chart: Weekly Gravestone Doji candle formation.
There's one more day left in the week so this candle hasn't confirmed yet.
It presently is forming a gravestone doji candle. It could possibly even close as an inverted hammer by the end of Friday.
Both formations are sometimes signs of a bullish reversal.
A gravestone doji is a bearish signal at the TOP of rallies. But forming this candle in a downtrend, as is the case for MVIS, could mark a bullish reversal.
Looking at the Stochastic Rsi, momentum is currently below the 20 level, signaling a reversal could be coming soon. (green circle)
Looking at April 2023, the Stochastic Rsi dipped under the 20 level and quickly broke back above. (orange circle) This resulted in a +300% gain in 42 days.
Also a dragonfly doji formed at the bottom of the downtrend, signaling a bullish reversal.
In the next few weeks we will see how MVIS plays out, and we will know for certain if my thesis is valid.
Right chart: Monthly Fibonacci Retracement.
MVIS has retraced down to a local low of $1.15, and bounced off the 0.618 golden pocket.
Will the 0.618 hold as support? The month hasn't ended yet, so we will need to wait and see.
In the big picture it looks like this could be the end of wave 2 of the Elliot Wave.
In Elliot Wave Theory, wave 2 is a pullback to the 0.5 - 0.618 of the Fibonacci, which MVIS has done so far.
If my guess is correct and this is the end of wave 2, then wave 3 would be next.
Wave 3 of Elliot Wave is a parabolic rise up. It's never the shortest wave and is usually the longest.
Left chart: Weekly Gravestone Doji candle formation.
There's one more day left in the week so this candle hasn't confirmed yet.
It presently is forming a gravestone doji candle. It could possibly even close as an inverted hammer by the end of Friday.
Both formations are sometimes signs of a bullish reversal.
A gravestone doji is a bearish signal at the TOP of rallies. But forming this candle in a downtrend, as is the case for MVIS, could mark a bullish reversal.
Looking at the Stochastic Rsi, momentum is currently below the 20 level, signaling a reversal could be coming soon. (green circle)
Looking at April 2023, the Stochastic Rsi dipped under the 20 level and quickly broke back above. (orange circle) This resulted in a +300% gain in 42 days.
Also a dragonfly doji formed at the bottom of the downtrend, signaling a bullish reversal.
In the next few weeks we will see how MVIS plays out, and we will know for certain if my thesis is valid.
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