$ML Trading Idea: Technical Analysis: MoneyLion Inc. ( NYSE:ML ) Daily Chart
1. Trend Analysis
Primary Trend:
The chart shows a long-term downtrend starting from August 2022 to early 2023, marked by lower highs and lower lows.
A reversal occurred around May 2023, transitioning into a bullish uptrend with higher highs and higher lows.
Key Observations:
50-Day SMA (not visible but inferred): Appears supportive during the uptrend phase.
200-Day SMA (Blue Line): Price recently crossed above the 200-SMA (~$65.75). This is a key bullish signal, as it indicates improving momentum and long-term investor confidence.
✅ Bullish Note: Price trading above the 200-SMA confirms a shift to positive sentiment.
2. Resistance and Support Levels
Resistance:
Major resistance is around $92.00, where the price stalled and formed the blue-highlighted Darkpool Zone.
Current Price (~$86.25) is struggling to break above this resistance.
Support:
Key Support Levels:
Near $65.75 (200-SMA).
Additional support around $50.00, which acted as a consolidation zone during the uptrend.
📉 Caution: If price fails to break $92, it could retrace toward the 200-SMA for support.
3. Darkpool Activity
A significant Darkpool Premium of $14,974,849.35 is highlighted at ~$92.00.
This indicates institutional selling or interest at this level.
Darkpool resistance zones often act as a ceiling unless buying pressure sustains above it.
4. Momentum and Volume
Volume:
Increased volume is observed as the price approached the $92.00 level, indicating strong buyer activity.
Squeeze Indicator (Bottom Panel):
The squeeze histogram shows increasing bullish momentum (blue bars) leading into November 2023.
Red bar at the far-right signals a possible weakening in momentum, suggesting caution near resistance.
5. Key Metrics (Fundamentals)
Revenue Growth: 24.27%
Free Cash Flow Margin: 26.06%
X-Value: 21.66
📊 Fundamental Backdrop:
Strong growth metrics align with bullish technical momentum. However, price behavior at resistance must confirm further upside.
Summary of Analysis
🔍 Bullish Signals:
Price trading above the 200-SMA.
Bullish momentum and improving volume.
Strong fundamentals (Revenue growth and cash flow margin).
⚠️ Key Risks:
Resistance at $92.00 remains strong; failure to break above may lead to a pullback toward $65.75.
Momentum weakening near resistance (as indicated by the Squeeze Histogram).
Trade Plan
Bullish Breakout:
Wait for a daily close above $92.00 with volume confirmation.
Target: $108.00+ (next psychological resistance).
Pullback Buy:
If price rejects $92.00, look for support around $65.75 (200-SMA) for potential long entries.
Stop-Loss:
Place stop-loss just below $65.00 if entering long positions.
