Stop chasing green candles and watch this level instead

A lot of traders make the mistake of buying the top when a stock climbs rapidly. It is usually much better to wait for a deep pullback. Right now, a specific chart is finally cooling down and sitting inside a critical floor area. The price recently failed to break past the key $2.00 mark. After that rejection, it faded all the way back down to its lower support range between $1.32 and $1.38. This is the exact zone where the previous upward move started. Instead of chasing green candles, this is where you want to watch for real buyers to step back in. The chart is currently showing some minor signs of life right at this floor. However, the volume is still very light. Do not look at this as a guaranteed trend reversal just yet. If the volume suddenly spikes inside this demand zone, the path to a steady move back up becomes clear. This setup belongs to NRED (also traded under the ticker NREDF). For this level-reclaim setup to work, the stock needs to hold this $1.32 to $1.38 floor and slowly clear the overhead levels one by one. The first key target for a confirmed bounce is getting back above $1.38. Once that level turns back into support, the next short-term targets are $1.45 and $1.50. Clearing $1.55 and $1.65 is where things get interesting, as it opens up the path toward the $1.70 to $1.80 range. The ultimate test for the chart remains the major breakout zone around $1.97 to $2.00. If heavy buying volume returns and forces a clean break past $2.00, the stock can easily target its old supply zone around $2.12 and higher. Are you tracking this pullback for a potential bounce, or do you think the price breaks below this current floor?