Here we have another great name that has breach the prior lows and did not make a higher high on the last move upwards. This remains bearish trend. However, we could start to see some sideways action on the price. I predict we will revisit the lows at around 12.
Lots of resistance around 16 and no signs of a reversal with RSI bullish divergences. Bottoming is a process and one wick down seems not nearly enough to change the trend. In the more bullish scenario, the price could go up to the extreme resistance zone. This is where the most people get trapped and if the price does not make new highs, then we are still in a downtrend.
So until I see more evidence of a trend change, I remain on the sidelines. Not fishing for bottoms but looking for evidence such as a bullish divergence and a higher low. Right now we have the opposite. A bearish divergence formed and now we are waiting for the lower high to confirm more downside action.
A new idea will be made if we do not manage to make new lows.
Lots of resistance around 16 and no signs of a reversal with RSI bullish divergences. Bottoming is a process and one wick down seems not nearly enough to change the trend. In the more bullish scenario, the price could go up to the extreme resistance zone. This is where the most people get trapped and if the price does not make new highs, then we are still in a downtrend.
So until I see more evidence of a trend change, I remain on the sidelines. Not fishing for bottoms but looking for evidence such as a bullish divergence and a higher low. Right now we have the opposite. A bearish divergence formed and now we are waiting for the lower high to confirm more downside action.
A new idea will be made if we do not manage to make new lows.