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.
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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.
Nice Analysis thanks for sharing with us ....great go ahead...!
FTUKcom
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Beautiful setup! Its hard to keep on top of all the tickers and timeframes. Thank you for sharing this. I'm pretty sure I'm subscribed. If not, you just got another! Thanks again!
ParCrypto
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@Forex-Traders-Uk, Thank you, I really appreciate it! I just subscribed to your page. I have been wanting to get into Forex trading!