This trade has reached its low target level I previously charted a while back, and the 50% fibonacci level all at once. This may not be the last stop on the way down, as it reached it very fast with some high volume. However, this area was a major point of resistance upwards previously, we should see resistance turned support. Expect a battle at this level of $42, and more than likely a short bounce upwards.
Notice the falling wedge pattern that is potentially forming in the short term. I do not expect this downtrend to last very long, I expect it to stay within the falling wedge.
I look to 2 major points on the fibonacci chart. the 50% between $40-$42, and the 61.8% lines ($33.00). With strong enough volume, we could see price reversals around either of these two lines. I do not recommend buying until trend lines are broken.
Remember, this chart is charted with a very long timeframe, 1D. Therefor, the patterns do take longer to take fruition, than if I was charting on a 15 minute chart, or 1 hour chart even. I am assuming this will remain volatile, but long term should stick to the trendlines, and until broken, we should not make moves. Watch RSI over next couple of weeks, and wait for a breakout!
This was a continuation of a previous chart:
Notice the falling wedge pattern that is potentially forming in the short term. I do not expect this downtrend to last very long, I expect it to stay within the falling wedge.
I look to 2 major points on the fibonacci chart. the 50% between $40-$42, and the 61.8% lines ($33.00). With strong enough volume, we could see price reversals around either of these two lines. I do not recommend buying until trend lines are broken.
Remember, this chart is charted with a very long timeframe, 1D. Therefor, the patterns do take longer to take fruition, than if I was charting on a 15 minute chart, or 1 hour chart even. I am assuming this will remain volatile, but long term should stick to the trendlines, and until broken, we should not make moves. Watch RSI over next couple of weeks, and wait for a breakout!
This was a continuation of a previous chart:
