Last week ended well & has given us all a welcome lift, mentally as well as financially I guess.
The daily is looking ok in as far as we seem to have bottomed & have had a relief rally to take us back to the first line of resistance around 0.095. Along the way we have left behind a small outside gap & are currently in the process of potentially forming a FVG from the high of Thu candle at 0.085 & whatever Mon low is. Frid high also reached the long term projected trend & resistance lines that have been reliable in the past & signify repeating reaction points or areas of significance. So while the indicators & chart pattern looks relatively bullish there needs to be a recognition of the negative aspects that are always there & which usually resolve themselves before we move on.
The weekly chart reflects the final EOFY selling nicely & has formed a nice long leg doji that usually signals a reversal. The chart also shows that we have returned to the previous support around 0.09.
So, what remains to be determined is if that 0.09 is still support or will it be a short term resistance for another month or so. A healthy resource update & confirmation of continuous production at a higher level will I think put a floor under us & 9 will be confirmed as support in the event that the lower gap will close during the coming week & we can then test out 11.5 - 13 or higher resistance next by the end of next week or after that. Good luck all
AGY Price at posting:
9.2¢ Sentiment: Hold Disclosure: Held
