Until there is a higher lowShare price---first on the hourly....then daily time frame, the down trend continues....
Low yesterday was $6.51 ----right on the 20 day moving average!!!!
And so, if we see a lower high compared to yesterday's $7.8... or whatever, and the share price drops below yesterday's low price of $6.51, the down trend continues.
Why? A downtrend on a chart indicates lower highs on lower lows on a particular time frame....
All beginner traders or investors should also be aware that stocks often drop down to a moving average, which acts as support. We saw this yesterday---as Apha bottomed for the day at the 20 day moving average.
The next major support is $6.15---yesterday's 50 day moving average.
The Moving Average will also act as resistance or top..
It is so important to understand price action on a chart, especially the candlestick chart, because it allows you to identify the trend---up, down, sideways...
Then you can analyze price action foe different time frames. For instance, yesterday the price moved in a range most of the afternoon, but on the daily candlestick, we saw a huge red candlestick----with no reversal, strongly indicating the downtrend/selloff is not over.
We can then combine moving average with the candlestick chart and various time frames to determine price action, trend, support and resistance...
Anyone making predictions about where share price will be at end of day, tomorrow, next week....is just guessing or engaged in magical thinking if they don't make their decision based on these tools.
Learn the basics of candlestick charts and tevhnical analysis, especially the moving average. Otherwise, you are throwing darts blindfolded.