We looked at this one last week. We noted that it seemed to be forming a basing pattern but that there was strong resistance at the runaway gap highlighted by the shaded grey zone.
Since we looked at it, the price chart remains a “Go” although the bars are the weaker pale blue color. What has happened in the few days since we lsat checked, the GoNoGo Oscillator has fallen and is riding the zero line.
It is critical to watch this inflection point. If the oscillator can find support again here again and rally then we expect price to rally and test the lower bound of that gap, around 8.63. Of course, if the oscillator doesn’t hold the zero line, that will suggest bearish momentum and so the “Go” trend will be in doubt
Since we looked at it, the price chart remains a “Go” although the bars are the weaker pale blue color. What has happened in the few days since we lsat checked, the GoNoGo Oscillator has fallen and is riding the zero line.
It is critical to watch this inflection point. If the oscillator can find support again here again and rally then we expect price to rally and test the lower bound of that gap, around 8.63. Of course, if the oscillator doesn’t hold the zero line, that will suggest bearish momentum and so the “Go” trend will be in doubt
Comment:
The GoNoGo Oscillator has fallen back to zero and looking to find support from above. The trend is still "Go" but we want to see this support hold. We saw the gap from early March provide significant resistance already and so any rally from here would have to deal with that. If we can get above the resistance from the gap (shaded channel) that is bullish for the "Go" trend to continue longer term.
