The upward momentum follows a decisive reclaim of the 200-day moving average near $3.00 during Monday's session. Analysts note that this development shifts the technical outlook away from a potential downside resolution, suggesting instead that an upside breakout from a large rectangle consolidation pattern could unfold. This pattern features a lower boundary established at the recent low of $2.50, followed by a sharp advance.
Market observers highlight that because this marks at least the fourth attempt since February to sustain a position above the 200-day moving average, the current move may carry greater success. However, as bullish momentum enters its third consecutive day against a significant resistance zone, some near-term corrective behavior or a pullback could occur before a sustained breakout attempt.
In the event of market weakness, short-term support is identified at Tuesday's low of $3.20, with a prior high situated at $3.09. On the upside, initial targets sit at $3.40 and $3.49, while a decisive move above $3.40 would trigger an upside breakout from the rectangle formation and provide a broader trend reversal signal.
