There is a lot going on with this chart, and it all looks bullish. First, had a perfect retrace to the .618 fib after the crazy run to start the year. $SXP bounced well from that area and challenged the local high of the $3.80 range. We have retraced and bounced off of support in the $2.75 range. It appears that we are forming a nice cup and handle pattern here.
On top of all the above, there is a bullish divergence on the RSI along with a breakout. The 4h MACD is also turning bullish. This is all pointing to a serious price increase. If we break out from this handle, we should see the $3.75-$3.80 price again. The two diagonal lines at the top of the chart are resistance from previous all time high (Wick and close). If we can close above that, I fully anticipate a $5.00 $SXP.
On top of all the above, there is a bullish divergence on the RSI along with a breakout. The 4h MACD is also turning bullish. This is all pointing to a serious price increase. If we break out from this handle, we should see the $3.75-$3.80 price again. The two diagonal lines at the top of the chart are resistance from previous all time high (Wick and close). If we can close above that, I fully anticipate a $5.00 $SXP.
Comment:
Price broke out of the handle perfectly, but lost momentum fast. Looks like we are reaching support here and retesting the handle. Hope we have a bounce here.