VIRTUAL - A Long Opportunity or More Pain Ahead?

Jan 25

VIRTUAL has dropped over 50% from its all-time high of $5.14, now trading around $2.50. A head and shoulders pattern has formed, with price currently testing the neckline, a bearish sign that could signal further downside. Let’s break down potential targets and trade setups.

Key Levels and Support Zone:

1.) POC from December 2024 Range:

• Located at $1.67, a significant level from previous trading activity
  

2.) Anchored VWAP:

• Taken from the lows, currently around $1.62, reinforcing the $1.66 zone as strong support
  

3.) Fibonacci Retracement (Log Scale):

• The 0.382 Fib from the recent wave sits at $1.77, providing additional confluence for the support area
  

4.) Trend-Based Fibonacci Extension:

• The 0.786 Fib aligns at $1.71, further strengthening the $1.70–$1.80 range as a reliable support zone
  

Trade Setups:

Short Setup:

• Entry: $2.836 (Fib retracement 0.618 from the current downtrend)
  

• Target: around $1.80
  

• Stop Loss: Above $3
  

• Risk-to-Reward: 5:1
  

• Potential Drop: 30–40% from the entry level
  

Long Setup:

• Entry: $1.70–$1.80 range
  

• Target: Depends on confirmation and take profit areas. A realistic initial target could be around $2-$2.30
  

• Stop Loss: Below $1.52
  

• Risk-to-Reward: 2:1 or better depending on take profit strategy
  

Jan 27

Trade closed: target reached

Support Zone not reached