UNI Surges to $3.90 but Momentum Exhaustion May Lead to Rejection
UNI has seen a significant surge of 6.42% to $3.90, but experts are warning that the door may not be open for it to reach $4.
The move is contained within a narrow daily range of $3.66, $3.96, and while UNI is trading above its major moving averages on the chart, momentum has flatlined.
According to Felix Pinkston, the current situation is not a result of fresh conviction but rather a liquidity vacuum being exploited by existing positioning.
The RSI is at 67.75, pushing against overbought territory without crossing the threshold, while the Stochastic at 88.18 on the %K line is deep in overbought territory.
The MACD histogram has landed at zero, indicating momentum exhaustion, and the Bollinger %B position of 0.94 means price is essentially sitting on the upper band at $3.93.
To break through to $4.14, UNI needs volume to expand and walk the bands wider, otherwise mean reversion toward the $3.63 middle band is the path of least resistance.