SNDK has already fallen back to the lows last seen in July.
To those criticizing my view, take a step back and think logically: when price returns to the same support zone, what are the odds it simply holds and immediately delivers a V-shaped recovery?
Regardless of how many dip buyers are stepping in, the technical picture remains concerning. July's low is unlikely to provide a strong floor.
If that level breaks, a wave of bullish stop-losses could be triggered, accelerating the downside through a liquidation cascade.
Under that scenario, another 20% decline wouldn't be surprising at all.
Sometimes, buying the dip too early is just another way of catching a falling knife.
To those criticizing my view, take a step back and think logically: when price returns to the same support zone, what are the odds it simply holds and immediately delivers a V-shaped recovery?
Regardless of how many dip buyers are stepping in, the technical picture remains concerning. July's low is unlikely to provide a strong floor.
If that level breaks, a wave of bullish stop-losses could be triggered, accelerating the downside through a liquidation cascade.
Under that scenario, another 20% decline wouldn't be surprising at all.
Sometimes, buying the dip too early is just another way of catching a falling knife.