Stacks (STX) Rallies 34% — Signs Point to End of Correction

Key Takeaways

• Bullish breakout attempt from a falling wedge
• RSI showing early bullish divergence
• Key Fibonacci levels acting as resistance

Stacks (STX) has reached a critical inflection point after an extended correction.

The daily chart suggests completing a major corrective wave, while the lower time frame indicates an early-stage impulse wave attempting to break key resistance levels.

STX Price Analysis

The daily STX chart reveals a prolonged downtrend following the completion of a five-wave impulse structure, with Wave (v) peaking at $3.86 on Apr. 1.

The price has been contained within a descending channel, which typically signals a potential reversal.

A significant support zone near the 0.786 Fibonacci retracement ($1.15) has held, preventing further downside.

The wave count suggests an ongoing ABC correction that started on Aug. 5. Wave C is close to completion, currently below the $1.15 level (0.786 Fib).

Additionally, the Relative Strength Index (RSI) has formed a bullish divergence near oversold territory, indicating diminishing selling pressure. A breakout above the descending triangle could confirm the start of a new impulsive structure.

The next key resistance levels lie at the 0.618 ($1.73) and 0.5 ($2.14) Fibonacci retracement levels.

A move above these zones would signal a shift in momentum, potentially marking the beginning of a broader trend reversal.

STX Price Prediction

On the 1-hour chart, STX is forming a smaller-degree impulsive wave. The structure suggests that wave (i) has already formed, reaching $1.08. It now trades slightly below $1 but is still up by 34% from the previous low.

After the bounce, a brief corrective wave (ii) happened with the price at around $0.98. A breakout from the local consolidation would confirm the continuation of wave (iii), with potential upside targets around the $1.5 level.

The immediate upside target lies at the 0.786 Fibonacci retracement ($1.15), which could act as a resistance zone.

A successful breach could propel the price toward the 0.618 extension ($1.73), followed by the 0.5 level ($2.14).

However, failure to hold above $0.98 could invalidate the bullish scenario, leading to a retest of lower support at $0.80 or even the prior low near $0.65.

Key Levels to Watch

• Immediate Resistance: $1.15 (0.786 Fibonacci retracement).
• Key Resistance: $1.73 (0.618 Fibonacci retracement).
• Major Resistance: $2.14 (0.5 Fibonacci retracement).
• Immediate Support: $0.98 (local support zone).
• Critical Support: $0.80 (descending wedge support).
• Bullish Target: Above $1.73 if momentum sustains.
• Invalidation Zone: Below $0.80, signaling further downside.