Last move we broke up out of the consolidating triangle with very little bullish momentum and then retested the top of the pattern failed and dropped to the major support line with a quick rebound. Now for a fresh new look at our trading pattern using the predominant bearish price channels we have been trading within. We are in the midst of a price squeeze between the major support and the falling resistance #1. This descending line has been a major resistance and then flipped to support and has now flipped back to resistance. These points will be entering into a squeeze which will force the market to choose the direction we are moving.
To keep this from breaking the overall bullish long term structure we will need to break to the upside of that support line for another R/S flip.
On the 1day chart the RSI 14 looks to be changing direction into a possible upward trajectory which would match the same upward trajectory angle as its last 3 runs which is promising but too soon to tell. This will have to be watched for confirmation on the 1 day chart (not the one published here)
On a plus side, the breakout indicator keeps getting lower with this channel and it currently sits around the $1.70 range to signal long trades to buy in. But to get there KNC must regain the R1 first.
To keep this from breaking the overall bullish long term structure we will need to break to the upside of that support line for another R/S flip.
On the 1day chart the RSI 14 looks to be changing direction into a possible upward trajectory which would match the same upward trajectory angle as its last 3 runs which is promising but too soon to tell. This will have to be watched for confirmation on the 1 day chart (not the one published here)
On a plus side, the breakout indicator keeps getting lower with this channel and it currently sits around the $1.70 range to signal long trades to buy in. But to get there KNC must regain the R1 first.