Although support was found earlier than the 3.1 predicted, the hammer proved to be a telling sign of the reversal which has since played out. The question is now, will the short-term positive trend continue? Candles with long tails in one direction or the other tend to indicate an over-extension. On this occasion, the push beyond 5.0 was thwarted and the price bounced back rather suddenly, with a close price sitting very snuggly on that 0.236 fib level. The old adage of support becomes resistance appears to have come to fruition. We will see in due course whether the bulls have the grunt to break the ceiling at that level.
IAM Price at posting:
4.6¢ Sentiment: None Disclosure: Not Held
