Heya, Jake did a great explanation, just a side note to his.It's...

Heya, Jake did a great explanation, just a side note to his.

It's normal and healthy for prices to retest previous support levels. As Jake said, previous support was 250, we're going to retest that on low volumes indicating there are some sellers looking to take profits or that someone/something is trying to push price down to accumulate. This image doesn't show enough on its own, you need to zoom out a bit for the real picture.

The little orange lines around peaks and troughs are thought of as tests (called pivots). Where you see positive price movement that includes returns to test previous support/resistance levels and continues, it indicates a healthy trend with lots of points you can choose to take or exit a position. If the movement was just one big sloping line, it's almost guaranteed it will return to where it started.

RNU has done a slowly surely upwards move (remember the turtle hare story?), that should help support our SP in bad times.

Hope that helps.

C