The price of Tree House (TREE) has sharply declined since it peaked above $0.70. However, on the 15-minute chart, bulls are starting to show initial signs of recovery around the support area at $0.445. Is this a rebound or just a "blip" before further declines?
📉 Chart Overview (15 Minutes)
Current Price: $0.4527
Moving Average 7: $0.4520 ✅ Just reclaimed
Moving Average 25: $0.4473
Moving Average 99: $0.4505
🔍 Key Points
Bullish Signal: Short-term moving averages (the 7 and 25 moving averages) are converging near the price action - this is usually a sign of strong movement ahead. If trading volume increases with a break above the resistance level, the likelihood of a short-term reversal is higher. Resistance to surpass:
$0.4620 - The first obstacle to change the bearish momentum.
$0.4880 - Breaking this level may allow the bulls to regain their advantage in the short term.
Support Level:
$0.4420 - Breaking this level could open the way towards $0.425 or lower.
⚠️ General Direction
On larger timeframes, the trend remains bearish. However, the short-term structure shows signs of improvement. Nonetheless, an important condition must be met: confirmation through trading volume. Without new cash flows, any rebound will be temporary and can easily be pushed down.
💬 Summary
The price of $TREE is in a tug-of-war between long-term selling pressure and short-term recovery efforts. If you are anticipating a reversal, closely monitor the price reaction at $0.4620 and $0.4420, and watch the trading volume to avoid falling into a "technical recovery trap".@Treehouse Official