A significant break of the 200 moving average on the weekly...

A significant break of the 200 moving average on the weekly chart opens up the .07 number and, on extension, around .059/.06.

Technically I don't see any reason why .07 and .06 being the bottom. Let's hope so. The lower number to watch in the coming days is .08. Also of some relevance is that many people who took the 5.5 placement will now be panicking because their psychology will be finding it difficult to give this profit back, which has partly resulted in this sell-down. IMHO.

Suppose I look at two different chart styles, Candle and Heiken Ashi. The candle chart shows the price closing at the low. Heiken Ashi is showing momentum is slowing. The volume, which is a better indication of momentum, shows the highest weekly volume since March 29, week 21.




Daily Chart.

I don't use Fibonacci often; however, I have put it on this chart for others. I find just drawing S/R lines more useful. (Personal opinion.) The damage was really done on the death cross 50 crossing the 200. At that point, the general rule is to look for shorts—That's what you would do in FX and Futures anyway. I was always concerned with the price falling below .12 and the swing low at .11. Once they break, it was all about the 200 sma.



This analysis is done with the view of buying more and trying to ascertain the best opportunities. As with all technical analysis, some factors can influence outcomes, such as announcements, Great white sharks waiting to take a position etc.

None of us likes giving huge profits back. However, if you haven't taken any profits, I personally don't believe now is the time. Don't let the fear win.

The big question is can management bring in some buying before this happening?