Hello Pal International, Inc (OTC:HLLPF) was plummeting down over 11% on Friday after bouncing up 16% from its low-of-day on Thursday.
The travel based social media app and crypto miner, which offers a cryptocurrency wallet and will eventually allow customers to mine their own Dogecoin (CRYPTO: DOGE), Litecoin (CRYPTO: LTE), Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) from its ‘in-house’ rigs, has fallen about 77% from its March 4 all-time high of $1.85 toward around the 40-cent level.
A reversal could be in the cards, however, if the stock hits a few key levels on the chart although bullish traders will want to watch for signals the sell-off is over.
The Hello Pal Chart: When the markets opened Friday morning, Hello Pal attempted to rise up over Thursday’s 48-cent high-of-day but failed and rejected at the level due to general market turmoil. The rejection and consequent price action has settled the stock into an inside bar on the daily chart. The inside bar leans bearish in this case because Hello Pal was trading lower before forming the pattern.
The 40-cent mark appears to be a key support zone and when Hello Pal tested the area as support on Thursday, the stock bounced aggressively up from the level. On Friday, the stock was printing a bearish Marubozu candlestick, however, which may indicate lower prices will come on Monday.
If Hello Pal falls below 40 cents, it may stage a reversal at an ascending trendline that has acted as support in the past. The trendline can be drawn back to the Sept. 20, 2020 low of $0.03 and Hello Pal has bounced up from the trendline on a number of occasions with the most previous bounce from the level taking place on Nov. 2.
Hello Pal’s relative strength index (RSI) is sitting at about 39%, which could also indicate a reversal to the upside may be nearing. When a stock’s RSI nears or reaches the 30% level it becomes oversold, which can be a buy signal for technical traders. When Hello Pal’s RSI hit the 37% level twice between Oct. 27 and Nov. 1 the stock rallied up 100% over the 11 trading days that followed.
The stock is trading below the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending below the 21-day, both of which are bearish indicators. Hello Pal is also trading below the 50-day simple moving average (SMA), which indicates longer-term sentiment is bearish. Both the eight-day EMA and 50-day SMA are both acting as resistance.
Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial
- Bulls want to see Hello Pal print a reversal indicator such as a hammer or doji candlestick and then for big bullish volume to come in and push the stock up over a resistance level at the 47-cent mark. Above the level, the stock has further resistance at 54 cents and the 62-cent mark.
- Bears want to see sustained big bearish volume drop Hello Pal down below the 40-cent level, which would confirm the downtrend is still intact. Below the area, the stock has support at the ascending trendline and the 35-cent level.