Step-by-Step Technical Analysis for Asana, Inc. (ASAN) as of June 7th, 2025

1. Price Structure & Trend Analysis

• Recent Price Evolution (Medium-Term): From February through early June, ASAN’s price has experienced a marked downtrend. After reaching highs above $24 in mid-February, sustained bearish pressure pushed it incrementally lower, with infrequent and weak rallies failing to break the trend, culminating in a pronounced gap and crash on June 4 ($19 → $15 in one session).
• Current Price Context: $14.88 as of June 7, holding just above a fresh support established in the $14.70–$14.80 region.
• Short-Term Trend: After the sharp drop, price has stabilized but not recovered, consolidating tightly in a narrow range ($14.69–$15.03) as evidenced across the last three sessions. This suggests a lack of bullish conviction and incomplete absorption of selling.

2. Volume Analysis

• High-Volume Capitulation: June 4 saw a substantial spike in volume (21.8M), likely triggered by news or earnings, confirming a capitulation event. The sell-off continued June 5 (11M) before volume halved again June 6 ($5.9M), in line with stabilization, but not reversal. Lack of immediate buy-side response signals weak demand.
• Volume Dry-Up: The post-crash sessions show attenuating volumes—suggesting that, while panic selling may be subsiding, there is currently no aggressive accumulation either.

3. Support & Resistance Levels

• Immediate Support:
  • $14.70–$14.80: Post-crash lows form immediate support.
  • $14.50: The intra-session low from June 5 is a secondary floor.
• Immediate Resistance:
  • $15.10–$15.30: Repeated intraday highs on June 4–6 (and session closes in this band on prior drops) establish this as the first resistance level.
  • $16.00: A failed recovery ceiling and former support-turned-resistance.

4. Candlestick & Chart Patterns

• Potential Bearish Continuation: The last three candles are small-bodied and clustered, forming a Bearish Flag/Rectangle just above new lows. Such formations, after a steep decline, often resolve in further weakness.
• No Clear Reversal Signals: Absence of hammer/inverted hammer or bullish engulfing patterns. The tight range and low wicks on both sides indicate indecision, not reversal.

5. Moving Average Analysis

• Short-Term Averages (e.g., 5/10/20 Day Median): With the price below all significant moving averages and the moving averages themselves turning downwards, there is pronounced downside momentum.
• Price Below 50/200 Day MAs: Shows confirmation of the long-term downtrend and lack of structural health.

6. Relative Strength Index (RSI) & Oscillator Analysis

• RSI: With the extreme drop, RSI is likely near or just below traditional oversold levels (i.e., 25–35)—but with no reversal spike visible on volume, oversold can persist during momentum-driven moves.
• Stochastic Oscillator: Would likely be flat-lining in the oversold region, again with minimal divergence.

7. MACD Analysis

• Daily MACD: Recent crash would have caused a bearish cross, with negative histogram expanding. This typically favors continuation lower or, at best, a prolonged consolidation.

8. Gap Analysis

• Breakaway Gap Down (June 4): The $19 → $15 gap is especially significant. Such gaps, when unfilled, statistically result in further downside or drifting consolidations for several days, barring an immediate catalyst.

9. Volatility and ATR (Average True Range)

• Elevated Volatility: ATR would have spiked with recent move, now declining as price compresses. Often, such volatility contractions resolve with another sharp move—in the direction of the prevailing trend (down).

10. Fibonacci Retracement

• Post-Crash Resistance: 23.6%–38.2% retracement zones for the gap fall within $16–$17—so even a weak bounce faces strong sellers above.

11. Sentiment & Market Structure

• Sentiment: Capitulation and lack of bounce signal negative sentiment. Bulls are exhausted, and newfound sellers are not being overwhelmed by buyers yet. Recovery bids remain absent.
• Option Flow/Bias: Skewed to puts and further downside protection as is typical post-plunge.

12. Elliott Wave / Fractal Structure

• Impulse Move Down: Recent selloff resembles a Wave 3 of impulsive decline. Consolidation implies possible Wave 4, with a potential final leg (Wave 5) lower still to play out.

13. Mean Reversion and Statistical Models

• No Mean Reversion Yet: No evidence (price and volume-wise) that most recent losses are overdone to prompt a snapback; the market tends to overextend before stabilizing post-capitulation.

14. Comparative Relative Performance

• ASAN underperforms tech peers: If index/sector benchmarks are not crashing but ASAN is, this is stock-specific weakness and likely to continue until valuation, sentiment, and supply-demand balance reset.

Conclusion

The overwhelming technical evidence points to bearish bias in the immediate (24-hour) timeframe:

• Price stabilizing at new, lower levels with no reversal signals
• Volume and volatility both contracting post-crash—classic for bear flags
• No aggressive accumulation, oscillators oversold but not triggering reversals, and price is below all major moving averages

The highest probability scenario is a further test—if not a breakdown—of the $14.70 support area in the coming session. Even if that floor holds temporarily, sellers remain in control, and the risk/reward for a counter-trend bounce is unattractive.

Trading Plan: Optimal trade is to sell (open a short) slightly above current price, using weak resistance as entry trigger, and target the break of support for profit-taking.

• Open short at $14.95 (slight retrace to flag top/round number, improves entry)
• Profit target $14.40 (prior session lows/fresh breakdown projection)

Aggressive traders may add to shorts on breakdown or use tight stops just above $15.20 (failed bear flag invalidation). Until a strong reversal or accumulation signal emerges, downside remains favored.