The price has successfully stayed above the long term bearish trend line after having broken it late last week. This isn’t enough to signal a reversal to a bullish trend, but it does show a further weakening of downward pressure.
Currently the price is above the 38.2% retracement, with resistance around the $278 level. At the current range of between $270 and $280 is where we are likely to see some selling pressure from profit taking in the immediate term, creating a possibility that the price may fall below the 38.2% at some point in the near future. If however the market keeps the price above the $280 level, there is greater room for upside, with little resistance to stop a testing of the 50% retracement level.
In any event, what we can see with a fair degree of certainty is that a clear support range has formed. The $223 to $243 range seen in yellow is where more medium strength support will likely be found if any price drops occur in the short term (1-2 months). The $210 to $223 range seen in blue is where the strongest support lies, movement into this range is more likely to occur in the long term, however if it occurs in the short term (1-2 months), it would be a significant bearish signal. Any movement past the support range and below $210 will most likely result in another test of the $152 level.
Currently the price is above the 38.2% retracement, with resistance around the $278 level. At the current range of between $270 and $280 is where we are likely to see some selling pressure from profit taking in the immediate term, creating a possibility that the price may fall below the 38.2% at some point in the near future. If however the market keeps the price above the $280 level, there is greater room for upside, with little resistance to stop a testing of the 50% retracement level.
In any event, what we can see with a fair degree of certainty is that a clear support range has formed. The $223 to $243 range seen in yellow is where more medium strength support will likely be found if any price drops occur in the short term (1-2 months). The $210 to $223 range seen in blue is where the strongest support lies, movement into this range is more likely to occur in the long term, however if it occurs in the short term (1-2 months), it would be a significant bearish signal. Any movement past the support range and below $210 will most likely result in another test of the $152 level.
