- The price is now testing the 200-D MA and on the verge of a break rising wedge’s prior resistance of 60.71.
- If 61.90 holds, 2018 April’s solid lows and a touch above the 200-D SMA, bulls could be facing a washout to the downside.
- Any subsequent stops could spark the beginnings of a major break out.
- A break below $57.80 could be the straw that broke the bulls back and, subsequently, would equate for a continuation of the bear trend that would target below the $42 handle and late Dec lows.
- The price could drop by at least the height of the wedge (measured at the base where the two trendlines start) which is around $12.00 for a target of $47.00.
- First up, bears will look to the $58.00 support/ and $58.47 as the 21-D SMA ahead of $55.50 (monthly pivot point) and the 38.2% Fibo meeting cloud support.
- Daily stochastics still lean with a bearish bias, now with a bearish divergence given Friday’s high was not met by a fresh high in momentum readings.
Share
