Fibonacci – the higher low was just above the 88.6% retracement level which is normal for the first correction in a new bull market as first corrections often make deep retracements while the most recent low looks to have found support at the 76.4% level. The higher low was at support from the 88.6% angle and price looks to have once again found support at that angle.

Daily Chart

Moving averages – in a bullish position with the 100 day moving average (red) above the 200 day moving average (black).

RSI – marginally in positive territory just above the 50 level and that may be where price takes off again to the upside.

Monthly Chart

Pattern – a downtrend has been in force since the 2016 high and I 1believe the current price action to be corrective in nature.

Bollinger Bands – the middle band has been providing resistance but I believe price can bust above there, if only temporarily. Price may even reach the upper band which should act as strong resistance if and when it gets there.

Fibonacci – The low after the 2016 high was at support from the 76.4% retracement level so there is definitely potential for that to be a major higher low. The high after that low was at resistance from the 50% level and breaking above that level would look bullish. The major low was around support from the 76.4% angle and price is once again there low and I expect support to come in once again. I am targeting price to get back up to the 61.8% angle which should provide stiff resistance.

RSI – still in weak territory. Having said that, there is plenty of room to the upside.

Summing up – bullish at current levels, looking for a solid rally which I am viewing as a bear rally only.

By Austin Galt

www.thevoodooanalyst.com

Austin Galt has previously worked as a stockbroker and investment banker while studying technical analysis for over two decades. He is also the author of the book White Night: A Colombian Odyssey

Email - info@thevoodooanalyst.com

My website is www.thevoodooanalyst.com

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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