Benzinga - Marathon Digital Holdings (NASDAQ: MARA) opened at Friday’s low-of-day on Monday, in tandem with Bitcoin, which was declining almost 3%.
On Friday, Marathon Digital was mentioned on Benzinga’s Stock Whisper Index as a company under the surface that warrants attention because traders are secretly watching the stock.
Marathon Digital surged 54% between April 10 and Friday, blasting through the 200-day simple moving average (SMA) on the daily chart after consolidating under that level since March 17.
The 200-day SMA is an important bellwether. Technical traders and investors consider a stock trading above the level on the daily chart to be in a bull cycle, whereas a stock trading under the 200-day SMA is considered to be in a bear cycle.
The 50-day SMA also plays an important role in technical analysis, especially when paired with the 200-day. When the 50-day SMA crosses below the 200-day SMA, a death cross occurs, whereas when the 50-day SMA crosses above the 200-day, a bullish golden cross takes place.
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The Marathon Digital Chart: Despite Bitcoin trading near its low-of-day, traders came into Marathon Digital and bought the dip. The dip buyers caused Marathon Digital to bounce up from its low-of-day to print a bullish Marubozu candlestick, which could indicate higher prices wil come on Tuesday.
- Marathon Digital has been trading in an uptrend since March 10, making a consistent series of higher highs and higher lows. The stock’s most recent higher high was formed on Friday at $12.27 and the most recent higher low was printed at the $7.65 mark on April 6.
- If Marathon Digital bounces on Tuesday, Monday’s low-of-day will serve as the next higher low within the pattern, indicating the uptrend is likely to continue. If Marathon Digital falls to lose support at the eight-day exponential moving average, the stock could retest support at the 200-day SMA.
- Bullish traders want to see Marathon Digital continue to hold above the 200-day SMA, which will eventually cause the 50-day SMA to cross above the 200-day. Bearish traders want to see big bearish volume come in and knock the stock down under the 200-day SMA.
- Marathon Digital has resistance above at $14.66 and $19.51 and support below at $9.93 and $7.79.
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- Photo via Shutterstock.