Alphabet C rejected at $355 resistance: Live levels

Alphabet C’s 5-hour chart is displaying a significant rejection point at the $355 resistance level. Currently, the price sits at $347.71, which is just above crucial support zones and follows a bearish engulfing candle. For bulls to have a chance at success, they need to swiftly take back the $356 level, or else this situation could escalate towards recent downward trends.

The main focus for Alphabet C on the 5-hour chart revolves around the convergence of the 200-period Simple Moving Average (SMA) and the 61.8% Fibonacci retracement, which is approximately at $355.89. Initially, price made an unsuccessful attempt to break out on the bullish side, but it quickly faced a strong resistance, resulting in a bearish engulfing candle at $355.11.

This situation raises the chances that the current rebound is merely a preparation for another decline unless bulls can quickly reclaim the $356 area. In terms of trade management, the initial profits should be taken at the Target 1 level, and then the stop should be moved to break-even. More cautious traders should hold off on going long until the 5-hour close surpasses the resistance level.

When multiple technical barriers align, such as the 200-SMA and a significant Fibonacci retracement, expect heightened volatility rather than steady trends. In this particular scenario, strong momentum was nullified at the intersection of these technical barriers, which is a classic example of a trap for those who buy prematurely without proper confirmation.