Daily Positives Stoch 14 is in the bullish zone above 50 & below...

Daily
Positives
Stoch 14 is in the bullish zone above 50 & below 80
Closed at the top of the range
Very long wick on the candle / bar which is usually considered as bullish.
SO far the rising trend seems to have held on the two parallels

Negatives
Stoch 5 is in the bearish zone below 50 & trending down
Stoch 14 has crossed below the overbought line & trending down
MACD is below the signal line & trending down
Histogram is below zero & is trending down.


Outlook.
At first glance there would seem to be very few positives for Friday’s action but I don’t see it that way.

Analysis of the tick data for Friday shows considerable support and the very long wick with the close at the top of the range verifies that & is generally considered a bullish sign.
Fridays Selling vs Buying vol. was in the end 7,845,136 selling and 5,999,667 buying, resulting in net selling for the day of 1,845,469. That takes the net weekly sell volume to around 3 million.
Shorting for the week up to Thu, was virtually non-existent (but we may see a spike for Frid)

So given the buying Friday & coming on top of the recent positive announcements I expect the rising trend will support the sp.
Fridays close in the 0.063 – 0.065 area was the previous resistance a couple weeks ago so Fridays high may now be short term resistance or it may be a more solid support as inferred by the long tail on the bar & buying volume. That won’t be known for a day or so.
If it is indeed support then resistance is likely to be at the next parallel trend line around 0.069 – 0.07.
Whether we recover fully back into the previous 13 day range quickly remains to be seen but we have had some excellent news lately & that should provide confidence going forward.
We are currently back in the congested area of conflicting trends but the rising lower parallel down at 0.057 should provide support in the event of more selling until we re-enter the 0.065 – 0.075 range again.
I see the sell off as a normal and overdue event which was always going to happen but made worse by market conditions & the funds rebalancing. This could have been seen in the last few bars & momentum indicators.

Weekly
Positives
MACD is above the sig line & still rising
The weekly support at 0.06 and taking in the converging trends & support areas were tested & at this stage held up & closing right on the lower side of the channel
Closed in the new range after testing the breakout point.

Negatives
There was a wide range with very high volume.
Closed in the lower half of the weeks range
Stoch is in the overbought area & has turned over
MACD is wide & has flattened off
Histogram has also flattened

Outlook
After the sell off I would think that we will have a period of sideways movement & likely further retesting of that breakout at 0.06.
Weekly resistance may now become the bottom of the channel starting from last weeks close & on up to 0.075 . Once thru we will be looking at 0.095 – 0.105.
The momentum indicators are at their highs & will come down over time so one would expect to see a lower sp during the week but not necessarily anything lower than the previous bar.

Friday’s low saw a 50% fib retracement of the rally since the low at 0.026. Further market turmoil may get it down over time to the 64% line (0.047) & should not be discounted but I would not be counting on it for an entry & these prices are still great buying given the longterm outlook for Li & AGY in particular.