- Husa stock price closed at $2.90 with an increase of 11.97% during the last trading session.
- The price recently crossed above the 20 day EMA and is presently below the 50,100,200-day EMAs.
The Houston American energy corp price has been in a downtrend since making high at $261.25. The Husa stock started its bullish rally in 2009, driving the price from $20 to $261.25 after which the price plunged to $100 level, and consolidated between the range of $261.25 and $100 from 2010 to 2012. In March 2012, the price breached the support of $100 and dropped directly to the lows of $3 level.
The price recently touched the $16 level and fell to $3 level again. On a weekly basis, the price is below the 20,50,100 and 200-day EMA indicating strong bearish pressure on higher time frames. The price did break the $3 level on 10 March 2023, retested the zone and fell to $2.35 level.
As per the financials, revenue has been decreasing and net income for HUSA has been negative for the past four years. There has been no positive earnings for the company which has created fear in the investors, leading to the downfall of the stock.
Technical Analysis of HUSA Stock
The RSI curve is currently rising as price found support at $2.35 to again retest the $3 level with the strength of 52.50 on daily basis. The RSI curve has crossed 50, indicating bullish momentum but price did not close above the $3 level. On a four hour basis, a strong bearish candle pattern has formed, rejecting the $3 level indicating a move to the downside. The RSI curve is at 63.81 on a four hour basis, It will soon reach the overbought zone with the median line acting as a support for the RSI curve.
The price touched the upper band of bollinger and rejected it on a daily basis as price reached the resistance. There is a different scenario on the four hour basis as the price has crossed the upper band of bollinger, the price is still in a bullish momentum on the smaller time frames.
+Di has crossed above the -DI with ADX of 43.80 as bulls drove the price to the $3 level. While on a four hour basis, +DI might be above the -DI but the ADX dipped to 25.70 level indicating a reversal in the bearish momentum.
Conclusion
HUSA is strongly bearish on the higher time frames after breaking the low of $3 level. There has not been significant earnings for the company stating the weak financial aspect. The market structure and the price action are highly bearish. If the price could break the recent support of $2.35, we can expect an easy move to $1 level. On the other hand, if bulls can break the $3 level, there is a high probability for the price to reach $4 level. Investors should definitely wait for confirmation before getting into any kind of trades.
Technical levels:
Major support: $2.35 and $1
Major resistance: $3 and $4
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.