Positives
MACD rising
Histogram rising & above zero
Closed near the day’s high
Made a fourth new high in the current up S/T trend (7 weeks so far)
Negatives
There is an open “outside” gap at 0.042 – 0.043
Failed to make a new high on the last bar & volume was lower
Wed & Frid vol was selling (587,776 & 383,119 respectively)
Stoch 5 is overbought (avg line still below)
Stoch 14 is overbought & turning over
Currently in an area of converging trends (0.05 – 0.055)
Outlook.
There was net buying for the week was 1,253,517 compared to the prev weeks selling/profit taking of 872,024
The current S/T trend is up but looks slightly overbought at this time & my system shows conflicting signals.
So. On the next daily bar, I expect to see both a higher high than the last close as well as a lower low than the close.
While there are a couple of small gaps way down at 0.026 – 0.029 & another at 0.031 – 0.032 I don’t think they will close now. (unless the overseas markets have another sell off)
But I do expect the “breakaway gap” at 0.042 – 0.043 to close in the next 3 bars.
Support looks likely along the rising S/T trend lines (Green) & the breakout point at 0.044
Resistance is currently around last week’s high & up to 0.055 – 0.056. If we get through there then next resistance comes in around 0.06 – 0.065 & the next lot of converging trends.
Weekly
The weekly is looking quite bullish.
Positives
Made another higher low
Closed near the high
Broke resistance (0.044 – 0.046)
Stoch is back above the oversold line
MACD is back at the sig line & rising
Histogram is back at zero & rising
Negatives
Volume remains low
Outlook.
I have multiple sigs indicating the continuation of the trend but have a conflicting downside one as well
Volume would need to increase if the trend continues particularly as it approaches the next resistance.
I would expect to see the 0.044 – 0.046 level retested at some stage. Possibly as early as this week this as indicated by the daily analysis.
There is still an unclosed “inside” gap down at 0.031 – 0.032 which still has a high statistical probability of closing in the next few weeks but is certainly not a given.
There is no apparent catalyst to keep the momentum going for long in the current market conditions & that would have to be funding but this recovery may get the sp back up to pre-corona levels above 0.07.
Resistance 0.061 – 0.075. Nearest support 0.044
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