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18.5c support which has stayed strong since early July was compromised today as price touched a low of 18c before closing at 18.5c.
The MACD continues to decline towards zero. MFI's lower high shows a sustained reduction in demand. OBV shows some distribution activity. Nothing too alarming. However, without any high volume buy ups, price could drift lower. Price is now below the 20d and 50d MAs. Next level of support is at 17c.
A quick check of the weekly chart shows that the 20wMA approximates 17c, lending strength to the idea that this could be a strong support. However, it is also obvious from the chart that price bounced off the 50wMA before heading higher in recent past. With the MACD about to do a bearish crossover with the signal line, the possibility of price going lower cannot be discounted.
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2 comments:
i think the whole mkt is collapsing no point for ta now
doomslayer
Hi Doomslayer,
If you are slaying doom, I guess you must be optimistic? Haha...Or are you a doomsayer? Well, you might be right about the market. :)
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