Step 1: Overview and Context

• Wolfspeed, Inc. (WOLF) current price: $0.628
• Dramatic collapse since February, with a >90% decline from ~$6+ to <$1.
• Recent volume spikes hint at forced selling, possible delisting risk, or perceived insolvency events – critical context for technicals.

Step 2: Multi-Timeframe Trend Analysis

Daily Chart (Feb–June)

• Clear, accelerating downtrend.
• Largest single-day sell-off on March 28 ($5.38 → $2.59, ~52% drop, record 176 million shares volume) and again May 21 ($3.13 → $1.28, ~60% drop, 255 million volume).
• Each massive drop followed by rallies that continually failed at lower price levels (lower highs).
• After May 21, small bounce attempts but never holding >$1.60, each high sold aggressively.
• Past week consolidating $0.60–$0.75 zone.

Intraday (Hourly, June 23–24)

• Last 48 hours: initial upward move from $0.61 → peak $0.74, retracing to $0.62 at present.
• Volatility remains elevated but intra-hour volume declining – suggesting buying interest fading.

Step 3: Classic Technical Indicators

Moving Averages (Estimate)

• Short-term MAs (5, 10, 20-day) all sloped sharply down, price below all MAs – a textbook bearish signal.
• For mean reversion, price normally reverts to 5MA after falling deeply below, but here, even 5MA is above current price (e.g., likely in the $1 range), showing overwhelming supply.

Relative Strength Index (RSI)

• Oversold for days: Difficult to calculate exactly with current data, but nine consecutive sessions closing under previous low implies RSI <20 – deeply oversold.
• No meaningful bounce, a warning that panic liquidation persists (capitulation not complete).

MACD (Estimate)

• MACD likely deeply negative, no bullish crossover since May collapse – supporting continued downward momentum.

Volume Profile

• Massive distribution spikes on crash days, followed by declining volume on dead-cat rebounds.
• No accumulation footprint; heavy consistent volume on downswings, with lighter volume on minor green days.

Step 4: Patterns and Psychological Structure

• Falling knife: market in near-panic, relentless supply.
• Micro-bounces (intraday to $0.74) immediately reversed, price can't sustain above VWAP (likely ~$0.65–0.66).
• Formation resembles "Bear Flag" after dump: narrow upward/sideways channels after each leg down, always resolving lower.

Step 5: Support & Resistance

Key Levels

• Resistance: $0.74 (intraday high), $0.66–0.67 (failed recovery zone today and yesterday)
• Support: $0.61 (multi-hour closing level), $0.60, then $0.55 (Tuesday's low), then uncharted territory (no clear support below, price discovery ongoing)

Ladder of breakdown:

• If $0.60 fails, likely move to $0.55 almost immediately; under $0.55, rapid slide to new all-time lows.

Step 6: Candlestick / Price Action

• Latest candles: Doji/Long upper shadow on $0.74 test followed by retracement and narrow-bodied red candles – classic rejection.
• Last 2 hours: lower highs, lower lows, no real buying tail even with price near historical lows.

Step 7: Alternative Technical Methods

Fibonacci Retracement (on recent bounce/historic collapse)

• Mini bounce from $0.61–$0.74 retraced almost 100% – near full price rejection; no 38.2% or 50% hold.
• On long-term collapse, no retracement even to 23.6% since $6.84. Suggests oversold but capitulation persists.

Market Profile Analysis

• Fading participation – past two days, highest volumes at low price zones, no building of buyer ledgers above $0.66/0.74; very weak demand.

Ichimoku Cloud (Estimate)

• Price below projected cloud, cloud is red/flat-to-down – confirming negative bias.

Step 8: Momentum & Sentiment

• Momentum persistently negative, every rebound is sold into.
• Sentiment: Likely retail capitulation and institutional shorting.
• If insolvency/delisting rumors are true, bounce-risk is lower than normal, as forced liquidations overwhelm any technical buy-the-dip logic.

Step 9: Composite Conclusion

• Immediate trend is extremely bearish with aggressive sellers dominating every bounce.
• No signs of reversal, no sign of institutional accumulation, and every technical indicator (trend, momentum, volume, candlestick, support/resistance) points downward.
• Intraday bounce attempts failing instantly; the market is in full price discovery mode below $0.60–$0.61.

Final Trading Decision: SELL (SHORT POSITION)

• Optimal entry: on any small bounce to resistance ($0.66–0.67 zone), as sellers have regularly overwhelmed buyers above this level.
• Target: price breakdown towards next logical support ($0.55) or aggressive new lows if capitulation continues. Take profit at $0.55.
• Alternative scenario: If price can sustain above $0.74 for 2+ hours with volume, reevaluate for short squeeze, but probability is very low given orderflow and recent rejections.

Risk Note: Volatility and bankruptcy/delisting risk may make execution challenging. Use tight stops above $0.74 for risk control.

Summary Table

Metric	Signal
Trend	Strong Down
Momentum	Bearish
Volatility	High
Bounces	Sold
Volume	Distributive
Support	$0.60/$0.55
Resistance	$0.66/$0.74
Setup	Bear flag
Decision	Sell/Short
Entry	$0.66
Target	$0.55