FFAI price study

 Got you. Here’s a simple, step-by-step read of your FFAI chart and what the MAs mean.

1) What price just did (1-week view)

• Early week: quick drop → made a low near $2.21–$2.23.

• Then a steady rebound into $2.42–$2.46.

• Latest candles: pullback to about $2.29 and moving sideways.

2) Support & resistance zones (from the picture)

• Support (buyers step in):

  • $2.28–$2.30 → current base where price is sitting.

  • $2.21–$2.23 → recent swing low. Stronger support below.

  • Psychological $2.00 (big round number).

• Resistance (sellers show up):

  • $2.34–$2.36 → near the MA50 line.

  • $2.42–$2.46 → recent highs.

  • $2.50 → major round number and where your call gains value fast.

3) Moving averages (what each is telling you)

• MA10 (fast/blue) = short-term trend.

  • It’s now close to price and slightly curling up.

  • If price stays above MA10, short-term momentum is improving.

• MA50 (slower/red) = medium trend & “dynamic” resistance.

  • It’s still sloping down and sits just above price (~$2.34–$2.36).

  • A clean break and hold above MA50 is your first bullish confirmation.

• MA200 (long-term/gray) = big trend line.

  • It’s hidden on your screenshot. On a daily chart, use it to judge the long trend:

    • Price above MA200 = long-term bullish bias;

    • Below = long-term bearish bias.

4) Momentum checks (quick read)

• RSI(14) sits around the middle (not overbought/oversold) → room to move either way.

• MACD(12,26,9) is near the zero line with a small uptick → early/neutral-to-slightly-bullish momentum.

5) How to use this for your $2 call

• Your breakeven ≈ $2.30 (strike $2.00 + premium $0.30).

• Bullish path: reclaim $2.34–$2.36 (MA50) → push to $2.42–$2.46 → test $2.50.

  • As price climbs through those levels, your option premium should increase.

• Risk path: lose $2.28–$2.30 

• → likely retest $2.21–$2.23 or lower; 

• option premium shrinks quickly (time decay).

6) Simple trading plan template (if you want it)

• If price breaks and holds above MA50 on strong volume, consider selling part of your option at a target (e.g., $0.55–$0.65 premium).

• If price fails and drops under $2.28, decide in advance whether you’ll:

  • Exit to limit loss, or

  • Hold only if you expect a bounce from $2.21–$2.23 soon.

• You can place a GTC limit-sell on the option at your target so it fills if price spikes.