Momentum for trend has kicked back in gear for the bears. The Average Directional Index (ADX) 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 trend line A was busted to the downside. The blue highlighted squares mark the trend line break and the crossing of the directional index lines to favor the bears. Internal strength for a bearish trend has increased since.
The price move below the blue 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 buying is likely to return. Also, the trend line break objective, marked with arrows, is slightly lower than the full retracement. This creates a zone where buyers are likely to set up camp to build a new floor in the market.
Happy trading.. Staying short or on the sidelines for now waiting for the zone to hit.
Critical Resistance: $0.30588
Key Resistance: $0.29529
Key Support: $0.26698
Critical Support: $0.24653
The price move below the blue 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 buying is likely to return. Also, the trend line break objective, marked with arrows, is slightly lower than the full retracement. This creates a zone where buyers are likely to set up camp to build a new floor in the market.
Happy trading.. Staying short or on the sidelines for now waiting for the zone to hit.
Critical Resistance: $0.30588
Key Resistance: $0.29529
Key Support: $0.26698
Critical Support: $0.24653