$SOMI /USDC BEARISH STRUCTURE WITH WEAK RECOVERY ATTEMPTS
The market continues to print a sequence of lower highs and lower lows, confirming a sustained downtrend across intraday and higher timeframes. Price remains below key moving averages, which are acting as dynamic resistance and capping bullish momentum. Parabolic SAR positioning above price further validates continued downside pressure.
Williams %R is deeply oversold, signaling exhaustion in the short term, but not yet showing strong reversal confirmation. This condition often leads to brief relief bounces that get sold into rather than a full trend shift. Expanding volatility range suggests the potential for another impulsive move in the direction of the prevailing trend, which remains bearish.
Trade Setup: Short Position
Entry Zone: Pullback into a lower high near MA and SAR confluence resistance
Stop Loss: Above the recent swing high and trend invalidation level
TP1: Immediate horizontal support from recent price reaction
TP2: Stronger support zone aligned with prior consolidation base
TP3: Extended downside target near higher timeframe demand area
Risk Management:
Limit exposure per trade, maintain at least a 1:2 risk-to-reward ratio, secure partial profits at TP1, and trail stop loss after confirmation of continuation to protect capital against sudden reversals.
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