The daily MAY17 chart shows that price has been under influence of a solid horizontal resistance line at around the 375 level since October 2016. Price managed to break same resistance on February 7 from where price traded up to 385 until price made a reverse and started trading down towards same 375 level which now serves as support. During the last 2 sessions of last week price actually pierced through same supportive value. However, the green triangle that has been put into chart represents a strong supportive zone which comes from the horizontal trend line at around the 375 level and the ascending trend line which represents the lower boundary of the ascending price channel.
Friday’s candle in the shape of a so-called ‘Hammer’ suggests that the end of the decline of the past 6 sessions is now imminent and that price will find a bottom here. We will allow price one or two more down sessions towards the 363 level before we will consider an alternative short term outlook for this price.
Friday’s candle in the shape of a so-called ‘Hammer’ suggests that the end of the decline of the past 6 sessions is now imminent and that price will find a bottom here. We will allow price one or two more down sessions towards the 363 level before we will consider an alternative short term outlook for this price.
