Ondas (ONDS) Price Forecast: Wedge Breakout Signals Trend Reversal

Recovery Phase and Emerging Strength

The stock of Ondas Inc. (ONDS) has been recovering from a $7.50 decline (-49.1%), correcting to a low of $7.78 reached on March 30. Subsequently, demand improved, with the stock reaching a high of $11.06 on Monday as it showed early signs of a breakout from a falling wedge formation. ONDS provides autonomous drone and robotic solutions, as well as private wireless networking technology for industrial and government applications, and this bullish price behavior reflects a potential shift back toward bullish control following a sharp correction.

Breakout Attempt Gains Traction

A bull trend breakout of the wedge pattern was attempted on Monday with a rise above the prior high with a of $10.53 from Friday, along with a reclaim of the downtrend line across the top of the wedge formation. An initial breakout signal occurred above Friday’s high, which also triggered a breakout of the downtrend line. Volume advanced to an 11-day high, confirming improving demand. Confirmation of the breakout is shown by the daily closing price of $10.71, which was above Friday’s high.

Technical Signals Reinforce Bullish Case

There are several characteristics that add to the weight of the technical bullish evidence for the breakout. An outside day formed on Monday, and it fully encompassed the range of the prior two days. Prior to the trendline break, support was successfully tested near the 20-day moving average before the breakout was triggered. Once prior resistance is reclaimed and subsequently holds as support, the bull trend may be ready to proceed. The low for the day was $9.66, and the 20-day moving average is now near $9.62.

Moving Averages Turn into Support

A sustained recovery of the 20-day moving average signals improving underlying bullish momentum. Moreover, Monday’s advance further reclaimed both the 50-day and 100-day moving averages. Both the 100-day moving average at $10.12 and the 50-day moving average at $9.97, now mark near-term dynamic trend support areas during pullbacks.

Upside Potential vs. Breakdown Risk

The combination of indicators now pointing to strengthening trend support, along with the recovery of the trendline, suggests that a bullish continuation is likely – reinforcing the developing shift in control highlighted at the start of this analysis. That is, unless Monday’s low is broken to the downside, as that would represent a failure back below the 20-day average and signal weakening rather than

Strengthening conditions. An initial target derived from the wedge pattern is the peak at $15.28 from early January, but first, the stock needs to break above the lower swing high at $11.76 and then another lower swing high at $12.42.

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