We have lots things going on right now that indicate we could stay in this range for a long time to come.
In terms of support, we are sitting on a major support at 7800 and it seems to be holding well for the time being. The lower range of this support is the 7600 level which has been strong in the past. Below that we have the support located at our recent low of 7400. Additional support is located at the trendline dating back to July.
Above us we have lots of resistance. The 200-day moving average is at $9,284. Double top neckline resistance (former support) is at $9,280 25. The 50-day moving average resistance is at $9,392. The descending 10-week moving average is at the $9,411 level.
To top it all off, the 50 percent Fibonacci retracement of the recent drop is $9,470.
Things certainly feel very bearish right now but I've closed out my shorts and will sit on the sidelines for the time being.
In terms of support, we are sitting on a major support at 7800 and it seems to be holding well for the time being. The lower range of this support is the 7600 level which has been strong in the past. Below that we have the support located at our recent low of 7400. Additional support is located at the trendline dating back to July.
Above us we have lots of resistance. The 200-day moving average is at $9,284. Double top neckline resistance (former support) is at $9,280 25. The 50-day moving average resistance is at $9,392. The descending 10-week moving average is at the $9,411 level.
To top it all off, the 50 percent Fibonacci retracement of the recent drop is $9,470.
Things certainly feel very bearish right now but I've closed out my shorts and will sit on the sidelines for the time being.