So, the rising wedge on the upward price movement provided an easy call on the drop to 3500, which was spot on. Things are a little more complicated now. Price has formed a descending triangle and is squeezing at the 3500 support which is very strong with help from the SMA50. Triangle patterns are pretty neutral, so price could break either way. "Generally" a little more credit is give to the slant side, but it's really a toss-up. Based on the strong support at the 3500 zone, I'd have to give the nod to an upward break?... If that occurs, we could see movement up to 3900 range, but will get resistance around 3700 range with help from the SMA100. On the downside of things, a break could run to the 3100 range.
It's important to note the major channel, which is heading downward. Until the resistance of that channel breaks, overall price movement is down.
...but what do I know, I'm just a space suit engineer, not a trader.
Good luck!
It's important to note the major channel, which is heading downward. Until the resistance of that channel breaks, overall price movement is down.
...but what do I know, I'm just a space suit engineer, not a trader.
Good luck!