How do current technical indicators support buying RAYA?

The current technical indicators for Erayak Power Solution Group Inc. (RAYA) suggest a bullish outlook and support the buying decision as follows:

1. Positive Momentum:

• The Moving Average Convergence Divergence (MACD) is at 0.13, which is positive and indicates a potential upward trend in the stock's price.
• The Relative Strength Index (RSI) is at 90.22, suggesting that the stock is currently overbought, but this can also indicate strong buying pressure.

2. Support from Bollinger Bands:

• The stock is trading close to its Bollinger Band value of $1.31, which is the mid-point between the upper and lower bands. This can act as a support level, indicating that the price may find it difficult to fall below this point.

RAYA Trend

3. Fibonacci Retracement Support:

• The 0.382 Fibonacci Retracement level over the past year is at $1.06, which the stock is currently trading above. This could be seen as a support level, as the price may find it easier to bounce back up if it were to move towards this Fibonacci level.
• The 0.618 Fibonacci Retracement level is at $1.37, which is a potential resistance level. If the price were to reach this level, it could face significant selling pressure.

In summary, the technical indicators for RAYA suggest a positive momentum with potential support from the MACD, RSI, and Bollinger Bands. However, the overbought status indicated by the RSI and the proximity to the 0.618 Fibonacci level suggest that investors should be cautious and consider these factors alongside fundamental analysis before making a buying decision.