Momentum for trend is starting to kick in gear for the bears. The ( ) line is increasing at the same time the red negative directional index is staying elevated. The bears started to take control right at the time the dotted was busted to the downside. Internal strength for a has continued to increase since.
The price move below the 61.8% Fibonacci level has made the golden ratio critical resistance going forward. This move sets up a full retracement target to the previous low before strong long-term buying is likely to return. Also, the objective, marked with arrows, matches up nicely with the full retracement level. This creates a spot where buyers are likely to set up camp to build a new long-term floor in the market.
Staying on the sidelines for now waiting for the previous low area to hit.
Critical Resistance: $0.2404
Key Resistance: $0.2130
Key Support: $0.1802
Critical Support: $0.1710