TA discussion, page-1274

In the weekly it is a bit hard to read just where this retrace will bottom. Chart is a bit messy and support and resistance isn't clear cut but 80 cents maybe is in the frame. The week before last looks like the selling was reaching a climax with solid volume and the heavies seemed to play a big part in that.

Last week the selling continued but the volume eased so maybe we are seeing exhaustion not too far off.  Looked more like spooked retailers than the heavies last week. In any case it looks like a conventional continuation flag pattern. The 50% retrace point of the up leg which commenced from the swing low in the week ending May 25th to the swing high in the week ending September 25th  is close enough to 80 cents.

Instinctively I would be surprised to see it go as low 80 cents. The buy queue is pretty much exhausted and I find it hard to believe anyone would be silly enough to dump in these conditions and push the price off a cliff. An exhausted looking buy queue in my experience is often the pre-cursor to a reversal, i.e. the prospect of a bargain is emerging.

Weekly COB  November 6th