RXRX Continuation: Yesterday Hit $3.50 — Now I’m Watching the Failed-Squeeze Retrace
🐻 **Bearish / cautious short-term** 🐻
Ticker: **RXRX**
Company: **Recursion Pharmaceuticals**
Current setup: **failed-squeeze / retrace watch**
Bias: **bearish short-term unless bulls reclaim strength**
Key breakdown area: **$3.10 / $3.00**
Primary downside target: **$2.87–$2.80**
Stretch target: **$2.60**
Invalidation: **reclaim and hold above $3.35–$3.50**
Yesterday was a bloodbath for early shorts.
RXRX did not just bounce into the low $3s — it squeezed all the way to **$3.50**. That move punished anyone shorting too early, shorting too much size, or shorting without a stop.
But the important part is what happened after.
RXRX hit the **$3.50** squeeze zone and failed to hold it. Now pre-market is showing a retrace in a southerly direction, which makes today’s setup more interesting.
So the question for today is simple:
Was yesterday’s move the start of a real reversal, or was it just a squeeze into resistance before continuation lower?
Right now, I’m leaning toward the second scenario unless bulls prove otherwise.
# What Changed From Yesterday?
Yesterday confirmed two things:
First, RXRX has real squeeze risk.
Second, $3.50 is now a major reference level.
Before yesterday, I was watching **$3.25–$3.35** as the invalidation zone. Since RXRX spiked through that and tagged **$3.50**, I’m adjusting the read slightly.
A quick spike through resistance is not the same as a confirmed reclaim.
For me, the important question is whether RXRX can **hold above $3.35–$3.50**, not just wick into it.
So far, the pre-market weakness suggests that yesterday’s move may have been more of an exhaustion squeeze than a clean trend reversal.
# Current Price Action
Pre-market is showing RXRX retracing lower after yesterday’s spike.
That puts the focus back on the same downside levels:
* **$3.10**
* **$3.00**
* **$2.87–$2.80**
* **$2.60**
If bulls want control, they need to defend the low $3s.
If bears want confirmation, they need a clean break back under **$3.10**, then **$3.00**.
# Resistance Levels
* **$3.25–$3.35**: reclaim zone bulls need to recover
* **$3.50**: yesterday’s squeeze high / major resistance
* **$3.70**: next upside danger zone
* **$4.00**: full squeeze-risk area
# Support Levels
* **$3.10–$3.13**: first key support
* **$3.00**: psychological support
* **$2.87–$2.80**: main downside target zone
* **$2.70**: deeper continuation target
* **$2.60**: stretch downside target
# Signal
**Still bearish short-term, but confirmation is required.**
I would not blindly short every red candle after a stock just proved it can squeeze to **$3.50**.
The cleaner bearish setup is:
* Failure to reclaim **$3.35–$3.50**
* Break below **$3.10**
* Loss of **$3.00**
* Momentum back toward **$2.87–$2.80**
If RXRX holds **$3.10–$3.13** and starts pushing back toward **$3.35–$3.50**, bears need to be careful.
# Trade Plan I’m Watching
Entry idea: failed bounce below **$3.35–$3.50**
Breakdown trigger: lose **$3.10**
Confirmation: lose **$3.00**
Target 1: **$2.87–$2.80**
Target 2: **$2.70**
Stretch target: **$2.60**
Invalidation: reclaim and hold above **$3.50**
Squeeze danger: above **$3.50–$3.70**
# Why I’m Still Bearish
🔴 Yesterday’s move looked like a squeeze into resistance, not a confirmed reversal yet.
🔴 RXRX tagged **$3.50** but did not clearly establish strength above it.
🔴 Pre-market is retracing lower, which supports the failed-squeeze idea.
🔴 RXRX still has negative EPS and a negative P/E, fitting the cash-burn biotech profile.
🔴 Insider selling near this general range creates bad optics, even if done under a 10b5-1 plan.
🔴 If **$3.10** breaks, I think **$3.00** gets tested quickly.
🔴 If **$3.00** fails, the **$2.87–$2.80** zone comes back into play.
# What Could Break the Bear Thesis?
🟢 A strong reclaim and hold above **$3.50**.
🟢 A push toward **$3.70–$4.00** with volume.
🟢 Positive clinical, partnership, or platform-validation news.
🟢 Bulls defending **$3.10** and forming a higher low.
🟢 A broader biotech rally lifting beaten-down names.
# Bottom Line
Yesterday was painful for early shorts, but I don’t think the bearish setup is dead.
RXRX squeezed to **$3.50**, failed to clearly hold that level, and is now retracing pre-market.
That makes today’s key test very simple:
Can bulls defend **$3.10–$3.00**, or does yesterday’s squeeze turn into a failed-bounce setup?
If **$3.10** breaks, I’m watching **$3.00**.
If **$3.00** breaks, I think **$2.87–$2.80** comes back into play.
My view: **bearish short-term, but confirmation required**
Key breakdown: **below $3.10**
Main target: **$2.87–$2.80**
Stretch target: **$2.60**
Invalidation: **hold above $3.50**
Not financial advice. Just watching the continuation after yesterday’s squeeze and today’s pre-market retrace.