Since the move down from $268 to $228 last week, the $232 level has remained the lowest support level. The $243 level in not only the 38.2% retracement level of last week’s drop, but also a main support/resistance level of the past month and the point that the price has struggled to stay above for the past week.
In the past 24 hours we have seen another rebound off the $232 level after a sharp decline following a brief period of stability above the $243 level.
The move was not exactly unexpected despite having broken through multiple support levels within the space of an hour. As we can see from the narrowing price movements and the converged Moving Averages, the market was bound to move in a strong direction at some point. It’s likely that with this expectation, the lack of any strong upward direction during this period would cause bullish optimism to diminish, leading to the bears being in control and a subsequent drop to occur.
Further bearish pressure is not out of the picture currently and if the market keeps the price below the 23.6% retracement, another testing of the $232 level is likely.
If the price is pushed past the 23.6% retracement towards the $240 level, this would indicate a market correction towards bullish territory. This would open up the possibility for another rally to attempt a break past the 50% retracement.
The future direction of the price is largely based on the market’s ability to keep it above $232, since there in very little support under that level until $223. Staying above that point would mean that there is a fairly strong bullish bias present in the market that has the potential to create further upward pressure. However a sustained break down past the $232 level would indicate that the bulls have given up on trying to hold the price at that level.
In the past 24 hours we have seen another rebound off the $232 level after a sharp decline following a brief period of stability above the $243 level.
The move was not exactly unexpected despite having broken through multiple support levels within the space of an hour. As we can see from the narrowing price movements and the converged Moving Averages, the market was bound to move in a strong direction at some point. It’s likely that with this expectation, the lack of any strong upward direction during this period would cause bullish optimism to diminish, leading to the bears being in control and a subsequent drop to occur.
Further bearish pressure is not out of the picture currently and if the market keeps the price below the 23.6% retracement, another testing of the $232 level is likely.
If the price is pushed past the 23.6% retracement towards the $240 level, this would indicate a market correction towards bullish territory. This would open up the possibility for another rally to attempt a break past the 50% retracement.
The future direction of the price is largely based on the market’s ability to keep it above $232, since there in very little support under that level until $223. Staying above that point would mean that there is a fairly strong bullish bias present in the market that has the potential to create further upward pressure. However a sustained break down past the $232 level would indicate that the bulls have given up on trying to hold the price at that level.