Technical Analysis on Advent Technologies Holdings (ADN)The chart for ADN clearly illustrates its performance: a rapid surge at the end of 2020, followed by a consistent decline from 2021, leading to a 99% drop in value.
After reaching its lows around $1.70, the stock entered a sideways consolidation phase that lasted several months. It then staged a strong recovery with a gap away and a breakout of the descending trendline.
Currently, the stock is in a compression phase, forming a Triangle pattern, with converging highs and lows.
Bullish Scenario
In a bullish scenario, a breakout above the triangle is required, ideally accompanied by an increase in trading volumes.
The Volume Profile indicates the absence of significant resistance levels that could hinder the upward movement.
Bearish Scenario
In a bearish scenario, the stock would need to break below the triangle. However, the Volume Profile highlights a high-volume node represented by the rectangle, which also contains the POC (Point of Control).
Before a sustained decline can occur, the stock would need to breach this strong support zone.
