Equifax tests former support trendline after steep decline – Crypto News – Crypto News
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Equifax tests former support trendline after steep decline – Crypto News

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Equifax, Inc. (EFX), one of the three major credit reporting agencies in the United States, just closed at $188.18 after a sharp decline that has traders questioning whether this is a bounce opportunity or the beginning of something worse. The daily chart reveals a technical setup that’s equal parts fascinating and nerve-wracking—a complete breakdown of a multi-year uptrend that now leaves the stock in no-man’s land.

For nearly two years, EFX rode a beautiful ascending trendline from the late 2023 lows, climbing steadily toward highs just above $309 by mid-2024. That trendline acted as a reliable launching pad, supporting price action through multiple tests. But here’s where the story takes a turn: that same trendline, once a friend to bulls, has now flipped into potential overhead resistance after the breakdown. This is textbook technical analysis: when support breaks, it often becomes resistance on the way back up. Think of it like a bridge that collapsed; you can’t just walk back across it the same way.

Yesterday’s close at $188.18 puts EFX in a precarious spot. The stock has plummeted from those $309 highs, shedding roughly 39% of its value in what can only be described as a punishing selloff. Now, price sits suspended between two critical zones: the ascending resistance trendline looming overhead and a major support level at $159.93 sitting about $28 below. That’s nearly a 15% cushion to the downside—substantial, but not exactly comforting given the velocity of the recent decline.

So what does this mean for traders? If you’re bullish, you’re betting that $188 represents a zone where buyers step in, potentially viewing this as oversold. Any recovery attempt will need to reclaim that ascending trendline convincingly to suggest the breakdown was a false signal. However, if price can’t muster the strength to push back above that resistance, we could see another leg down toward $159.93, where the real test of conviction occurs.

The bearish case is straightforward: broken support becomes resistance, and the path of least resistance remains down. Until EFX can prove otherwise by reclaiming and holding above that trendline, sellers maintain control. Volume and momentum will be crucial to watch in the coming sessions—does price consolidate here, or does it roll over?

This setup is noteworthy due to its clarity. The lines are drawn, the zones are defined, and the market will reveal its intentions soon enough. For conservative traders, waiting for price to either reclaim the trendline or break below $159.93 might be the prudent path. Aggressive players might nibble here with tight stops below yesterday’s low, but this is where experience matters. Catching a falling knife requires precision, not hope.

The technical picture on Equifax is a textbook example of what happens when long-term structure breaks. Whether this becomes a capitulation low or just a rest stop on the way down will depend entirely on how price interacts with these two critical levels. One thing’s certain: the next move will be telling.

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