There are still some if's and but's on the chart which need to be resolved, however price is potentially moving sideways in an accumulation zone/trading range. However should supply (selling pressure) increase and overwhelm demand, a clear break and close below 11cps would most likely see price continue to breakdown further.
When price sliced sharply lower on the 23rd August, it drew out some serious volume which may have appeared at the time to be all selling pressure, but the next bar and the short term trend was up after that bar, and this suggests there was support or accumulation within that bar. And although there was much reduced volume the second time price moved below 12.5cps in mid October, it was still much higher than average, so a third dip down to at least that level would not surprise if the opportunity presents.
If this occurs, look for even lower volume as price tests the 12.5cps level, and a positive response following it.
There has not been any positive EMA cross yet.
Finally, the daily price action suggests 15.5cps is the key resistance level in the near term which will need to be negotiated (this is the level where a fresh new breakout would come from in the future), and the 14cps level above the current price is the minor overhead level to overcome.
cheers
AJM Price at posting:
13.5¢ Sentiment: None Disclosure: Held
