reddit stock update, H1 Bullish Channel Nearing Support Break – Sell Setup Ahead

### **reddit stock update H1 Chart Analysis: Bullish Channel at Risk of Downward Break**  

Hello Traders and Investors, let’s break down this critical technical setup on the **H1 timeframe** for the stock in focus.  

#### **Key Observations:**  

1. **Bullish Channel Formation:**  

   - The stock has traded within a **bullish ascending channel** (visible in the chart).  

   - Price is now testing the **lower boundary of the channel**, a key support level.  

2. **Bearish Breakout Potential:**  

   - A downward breakout is likely if price closes **below the channel support**.  

   - This would signal a trend reversal and open opportunities for **short-selling entries**.  

(reddit stock update)

### **Trade Strategy: Wait for Confirmation**  

**Do NOT Sell Yet:**  reddit stock update

- **Current Action:** Avoid premature short entries until the channel and support level break decisively.  

- **Trigger for Entry:** Sell only after a confirmed **close below the channel support**, followed by a retest of the broken level (now acting as resistance).  

**Price Targets Post-Break:**  

- Initial downside target aligns with the **channel’s height** projected downward (refer to chart).  

- A breakdown could trigger a sell-off toward the **next major support zone** (see image).  

### **Why This Setup Matters**  

- **Risk Management:** Waiting for the retest after the breakout reduces false signals.  

- **Market Psychology:** A failed bullish channel often reflects weakening buyer momentum, attracting bears.  

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### **Key Levels to Watch**  

- **Support (Critical):** Lower boundary of the bullish channel.  

- **Resistance (support-Break):** Retest of the broken channel line.  

### **Conclusion**  

While the stock remains in a bullish channel on the H1 chart, the risk of a bearish breakdown is rising. Traders should prepare for a **sell entry only after confirmation** – a close below support and a retest of the broken level. This disciplined approach minimizes risk and aligns with price action principles.  

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