The past few weeks have been sideways to down from a lower high, but weak selling pressure. The bears want the lower high to hold and to test the double bottom
around $5. Prices are currently in a converging triangle and bull flag
trading range as both sides fight for control. If this week closes on its high, it would be a wedge bull flag
, double bottom
pullback, and also a double bottom
with the previous failed bear reversal. If the bulls are able to form a wedge
flag soon and keep the 5.25 bull gap open, they will increase the probability of a test of the all time high. Although there will probably be some profit taking at the new high since a trading range. The bears need strong consecutive bear bars and a breakout below the double bottom
before the market is clearly no longer controlled by the bulls.
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