We continue to have sideways movement between well established lines of support and resistance. The line of support has been tested 8 times.
However, movement downward is running out of steam as evident by the last dip that was unable to reach our support line. So it's no surprise the price is now flirting with a breakthrough of our line of resistance. If this happens, look for the price to retest the line of resistance as our new level of support. If it holds as our new line of support and volume is sufficient, look for price increase equal to at least the height of our existing support/resistance boundaries, to around the 118000 mark.
Our buy mark would be just above the existing line of resistance, and if you miss that, it could retest the line as our new level support, which would provide a second buy opportunity.
Our stop could be located in two possible positions. First position is at the our existing line of support around 104000. Alternatively, if the price breaks out and then falls back into our existing support and resistance lines, a new upward trend line might be forming, and our stop would be at that line (low point of the orange line).
However, movement downward is running out of steam as evident by the last dip that was unable to reach our support line. So it's no surprise the price is now flirting with a breakthrough of our line of resistance. If this happens, look for the price to retest the line of resistance as our new level of support. If it holds as our new line of support and volume is sufficient, look for price increase equal to at least the height of our existing support/resistance boundaries, to around the 118000 mark.
Our buy mark would be just above the existing line of resistance, and if you miss that, it could retest the line as our new level support, which would provide a second buy opportunity.
Our stop could be located in two possible positions. First position is at the our existing line of support around 104000. Alternatively, if the price breaks out and then falls back into our existing support and resistance lines, a new upward trend line might be forming, and our stop would be at that line (low point of the orange line).