After a period of pullbacks and price volatility, SUI stock appears to be experiencing a technical rebound. Recent price movements have formed a classic inverted head and shoulders pattern, which is often seen as a reliable bullish reversal signal. Although the breakout has not yet peaked, the structure forming beneath the surface suggests increasing strength.
■• An inverted head and shoulders pattern is forming on the SUI chart
In a recent analysis published on X, Cleanwater points to the possibility of forming an inverted head and shoulders pattern on the SUI stock. It started moving down from $3.74 on May 29 to $3.00 by May 31, indicating the initial correction. A strong rebound followed, pushing the price to $3.39 on June 3, forming the first neckline.
The price then reversed again, dropping to $2.84 on June 5, forming a key support area and the 'head' of the pattern. However, a quick recovery pushed SUI stock to $3.55 on June 10, aligning with the neckline and reinforcing this pattern.
On June 13, SUI stock saw a final drop to $2.91, which Cleanwater identified as the final touch needed to confirm the inverted head and shoulders pattern. With the price currently trading around $3.04, this situation indicates strong upward potential.
According to Cleanwater, the inverted head and shoulders pattern crystallized with an initial decline, followed by a slight recovery, then a deeper second decline. This was followed by a surge towards a higher resistance level, culminating in a final drop, shallower than the second, hovering near the level of the first.
■• Agreement of the four-hour and daily charts: the market is preparing to break
The analyst also noted that a channel is forming on both the four-hour and daily timeframes, indicating the possibility of an impending breakout. While it's difficult to accurately predict when the breakout will occur, the steady price movement within well-defined support and resistance areas shows increasing strength. This sideways consolidation often precedes a significant move in either direction.
From his personal perspective, Cleanwater leans towards the upside, suggesting that there are significant upward chances if momentum shifts in favor of the bulls. Repeated tests of resistance and support bolster this view, indicating a strong underlying structure. Although he cannot pinpoint the exact moment for a price breakout, he believes the current situation favors those who prepare early to move.
The price then reversed again, dropping to $2.84 on June 5, forming a key support area and the 'head' of the pattern. However, a quick recovery pushed SUI stock to $3.55 on June 10, aligning with the neckline and reinforcing this pattern.
However, Cleanwater also expressed caution regarding the global economic environment, noting that broader news events have begun to affect market sentiment. He sees the current range as a strong accumulation area, but acknowledges that the picture needs more time to clarify.