Responding well to trended support / possible bottom
Price has broken down quite consistently with the main FTSE indexes in this case since around September - although topping and divergence now seen much earlier.
Price has fallen to quite a long term trended area of support where it has responded positively - this I feel is consistent with a horizontal test of the large monthly candle in 2017 where the price rose extremely quickly and trading was very thin. This is being revisited almost as if it were a gap.
The full candle has not been retested - and may or may not need to be, this downside is now the risk of further price reduction as I see it.
On the positive side, the response from the trend support has been strong, price has started to move upward and technical indicators are all exhausted to the sell side.
Upside targets are attractive and require the price to close higher than the weekly candles on the way down - which it has failed to do since October. Therefore if we see a break back above 1164 this will signal the start of a more concerted move higher.
Price has fallen to quite a long term trended area of support where it has responded positively - this I feel is consistent with a horizontal test of the large monthly candle in 2017 where the price rose extremely quickly and trading was very thin. This is being revisited almost as if it were a gap.
The full candle has not been retested - and may or may not need to be, this downside is now the risk of further price reduction as I see it.
On the positive side, the response from the trend support has been strong, price has started to move upward and technical indicators are all exhausted to the sell side.
Upside targets are attractive and require the price to close higher than the weekly candles on the way down - which it has failed to do since October. Therefore if we see a break back above 1164 this will signal the start of a more concerted move higher.