Testing Major Descending Trendline & 0.5 Fib ConfluenceAXT, Inc.BATS:AXTISoloTraderAUFollowing a macro parabolic rally from sub-$15 up to $143.16, AXT Inc. (AXTI) underwent a severe multi-month structural correction, forming a swing base in the $40.00–$45.00 area near its 0.618 macro Fibonacci retracement ($64.81). 1. Trend & Market Structure Macro Structure: The daily chart broke its parabolic advance in June via a structural shift (CHoCH) at $143.16, making lower highs and lower lows. Micro Structure: The recent recovery off $40+ has shown improved buying pressure, but price is currently testing major overhead resistance. 2. Technical & Fibonacci Confluence Zone Descending Resistance: The recent reaction high near $88.00–$90.00 tested the primary downward trendline originating from the $143.16 peak. As highlighted by the red circle, price met immediate selling pressure at this trendline. Fibonacci Retracement: Current price (~$81.64) rests directly on the 0.5 macro Fib retracement ($79.79) (measured from the $15.85 low to $143.16 high). Overhead Supply: The $89.93–$94.78 pocket represents key confluence (0.382 Fib level + descending trendline resistance + prior breakdown structure). 3. Execution Game Plan & Trade Scenarios 🟢 Bullish Breakout Scenario (Confirmation Required): Needs a daily close above $90.00–$95.00 with strong expansion volume to break the trendline. Targets: TP1: $102.46 (0.618 Fib) | TP2: $120.29 (Unfilled Supply / 0.786 Fib). 🔴 Pullback / Re-accumulation Scenario (High R:R Setup): If $79.79 fails, look for a deeper retracement back into the $65.00–$70.00 demand zone (0.618 Fib alignment). A bullish reversal candle pattern in that zone offers a far more attractive risk/reward ratio for swing longs. ⚠️ Invalidation: A daily close below $64.81 invalidates the intermediate recovery thesis, opening risk toward the sub-$50 lows. Final Stance: Neutral / Wait for Confirmation. Avoid chasing long positions directly into major descending trendline resistance. Wait for either a clean breakout close above $90.00 or a disciplined pullback into structural demand at $65–$70.