Just wanted to run over some technicals to clear some air, none of this is to show where I think price is going but rather to indicate what the current playing field shows:
This is a simple daily chart for ASX data, with volume and Stochastic RSI shown accordingly.
- Red boxes indicate significant price levels where trades are absorbed. Breaking these can generally indicate direction of momentum. Ideally, You want to see high volume prints when interactions happen with this levels. Depending on the colour of volume, this can give an idea where big players want to move.
Currently, 1.5c level is a strong base foundation, losing this would be due to bad news imo.
2c is the next level, where we have just bounced, however, on minimal volume.
2.4c, where we currently are is a relatively new level, which might be forming a new trade range.
- Volume is seen below all the candlestick data. I have circled the larger trade days to put into perspective how little money is currently being traded right now, where the purple arrow indicates our current daily volume. We haven't seen anything yet, in either direction.
-The Stoch RSI is below the volume. This just indicates whether something is overbought (lines moving to the top) OR oversold (lines moving to the bottom). The red circle below the purple arrow just shows we are currently (apparently) in an overbought area, but this is indicator is usually biased towards its relative volume, so it should be taken with a grain of salt. It is a good indicator of momentum and that's about it imo.
- The green question mark I have included is just a possible outcome IF the price decides to range back down again. Not always, but often poetically; price will follow a trend line which is seen in orange. The green question mark is simply just an area where is COULD bounce off if it wanted to continue this trend. This is just a fun coincidence, not a prediction.
AGAIN, this is all just general data interpretation, not by any means a price oracle. DYOR.
Thanks
