Comprehensive Technical Analysis for Wolfspeed, Inc. (WOLF)

1. Multi-Timeframe Price Structure Analysis

Long-Term Trend (Daily):

• The price of WOLF has experienced a precipitous collapse from above $6 just a few months ago to the current sub-$1 region. This is a decline of over 90%, creating an extremely bearish long-term price structure.
• Major gap-down occurred between March 27th-28th 2025 (~$5.38 close to ~$2.59 open), confirmed by massive volume (~176M on March 28th compared to average daily volumes of ~15–30M earlier). Frequent smaller gap-downs and elevator drops follow, notably May 21st ($3.13 → $1.28) and June 18th ($1.25 → $0.87).
• There is little to no sign of a stable bottom, and each attempt to rally or stabilize fails rapidly.

Short-Term Trend (HOURLY/INTRADAY):

• After the last gap to sub-$1, the stock is consolidating below $0.65, printing new all-time lows almost weekly.
• Recent price action (June 24–25) shows failed attempts to hold above $0.63–0.64 followed by persistent selling pressure, low highs, and heavy transactional volume accompanying aggressive dips to $0.58.

2. Volume and Order Flow Analysis

• Volume spikes coincide with major gap-down sessions, evidence of panic-selling and forced liquidations.
• Intragay volume on June 25th remains high for a micro-cap price stock, with selling pressure dominating every brief move higher (i.e., most 30–60min candles with upper wicks in the $0.62–0.64 zone followed by close at or near session lows, e.g. $0.60, $0.58, $0.57.)
• No accumulation patterns visible; no evidence of stealth buying—the tape is offering upticks followed immediately by larger downswings on rising volume.

3. Support and Resistance Mapping

Key Resistance:

• $0.63–$0.64 (rejected repeatedly on June 25th, with failed attempts to hold in previous sessions too)
• $0.60 psychological (attempted base, but failed)
• Major paleo-resistances above $1.25 (long out of play in current context)

Key Support:

• $0.58–$0.57 (today’s session low, but weak and thin orderbook; next real support is just previous hourly or round numbers)
• New lows are being printed with little support beneath.

4. Momentum Oscillators (RSI, Stochastics)

• 14-day RSI (extrapolated, as price is at nearly all-time lows): extremely oversold, typically in deep sub-20 region since May, but not reversing—pointing to exhaustion in buyers.
• Intraday stochastic is persistently in the oversold region; rebounds are minimal and immediately sold into.
• MACD (projected): Extended negative histogram with no positive crossover setting up—bearish momentum stays dominant.

5. Moving Averages

• The 20- and 50-day moving averages are far above the current trading zone; the price is trending consistently below all short-term and long-term averages, confirming relentless downtrend.
• On a 5–15min chart (inferred), every pop to moving average gets sold (as per hourly supply overhead at $0.63+), suggesting presence of mechanical sellers or short term technical trading.

6. Chart Patterns and Price Action

• No reversal pattern is forming (no double or triple bottom, no reversal candle). Instead, the chart prints a series of bearish continuation setups: breakdown from small consolidations, failed support retests, micro bear flags.
• No meaningful bullish divergence between price and momentum, ruling out imminent bounce scenario.

7. Event & Sentiment Analysis

• The relentless price destruction with consecutive gap-downs and surges in volume strongly hint at existential crisis: possible bankruptcy, regulatory delisting, catastrophic business event, or similar.
• No evidence of short covering or value-based buying. Market consensus is to sell any strength.
• Sentiment is likely at historic extreme pessimism, and further disappointment is expected until a true capitulation bottom is observed (which is not apparent yet).

8. Volatility & Risk Management Assessment

• Volatility is extremely high: daily moves of -20% typical, intraday ranges >10%.
• Orderbook is illiquid at these levels: liquidity events could precipitate further flash crashes.

9. Combined Conclusion

Given:

• Relentless macro-downtrend
• No bottoming formation or reversal in sight
• Heavy, sustaining sell pressure with each minor bounce sold into
• Microstructure showing supply at every resistance, especially $0.63–0.64 (solid short entry zone)
• High risk of further downside (towards $0.50 or lower, possibly going to zero)

The optimal short-term trade is to Sell (Short Position) on any minor bounce toward resistance, with a target at or near the next new low, as buying interest and technical supports are extremely weak and easily broken.

10. Trade Execution Levels

• Optimal open/entry price: $0.63 (just below repeated resistance, structurally optimal for minimal short-term drawdown, maximal profit potential)
• Target (close the short): $0.51 ($0.57 and $0.58 handled easily intraday, so $0.51 sets up to take advantage of the next breakdown leg)

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Risk Note: The trade is risky due to high intraday volatility and thin liquidity but aligned with existing structural and momentum dynamics. An aggressive stop for risk control could be set above $0.65, in case of a sudden news-driven reversal, but overall the path of least resistance remains down.

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Summary

• Decision: SELL/SHORT
• Entry: $0.63
• Target: $0.51
• Rationale: Overwhelming downtrend, no signs of reversal, heavy repeated resistance overhead and recurrent new lows.