Moonpig price down 33.91%: is the bottom finally in?

Moonpig has experienced a significant correction of approximately 34%, bringing its price action to a potentially decisive point near the lower boundary of its established trading range. Given that the range spans over 166%, increased volatility is anticipated, making the forthcoming price movement a crucial indicator for traders.

Following this sharp pullback, Moonpig is currently trading at a critical level close to its local range low. This area could serve as a launchpad for a potential liquidity grab followed by a reversal setup, often recognized as a swing failure pattern (SFP). With a substantial trading range and the market structure still exhibiting ranging behavior, traders are keenly observing for any signs of a structural shift.

Key Technical Points:

• Range Low Liquidity Zone: The price is currently hovering just above the local range low, where a sweep of liquidity could trigger a bullish SFP reversal, propelling the price back into the range.
• Point of Control Resistance: Historically, the Point of Control (POC) within the range has acted as a resistance level. A successful break and hold above this POC could pave the way for a gradual climb towards the range high.
• Fibonacci Extension Target: Should the range high be decisively breached with strong momentum, the next potential target lies approximately 390% higher, based on Fibonacci extension projections.

Moonpig’s 33% decline has positioned it near the bottom of its well-defined trading range. A breach of the current local low could lead to a swing failure pattern, where the price briefly dips below support to capture liquidity before rapidly rebounding back into the range. Experienced traders often utilize this pattern as a high-probability long setup.

Currently, the market structure is not displaying bullish characteristics. Instead, price action remains rotational, confined within a 166% wide range. Until a structural change is evident, the primary assumption remains that the price will continue to trade within this range.

Within this range, the Point of Control (POC) is situated below the range high and has historically been a zone of strong reaction. The price has repeatedly tested this area, only to be pushed lower. If the price action can successfully reclaim and consolidate above the POC, the probability of a move towards the range high increases significantly.

A breakout above the range high would open the possibility for a much larger move, potentially targeting a Fibonacci extension level over 390% above current levels. However, until such a breakout occurs, continued volatility within the current range is expected, with a bias towards mean-reversion trading strategies.

What to expect in the coming price action:

Moonpig remains in a significant consolidation phase. If the price sweeps the current range low and subsequently reclaims it, this could serve as an initial indication of a structural shift and a potential bullish reversal.

Traders should look for confirmation of an SFP and a reclaim of the POC to validate any potential upside movement. Until these signals emerge, rotational price action within the range remains the most probable scenario.