In my opinion I think we are close to a turning point for the following reasons firstly the weekly price is approaching a support area at the 78.6% Fib which was almost touched yesterday. We need a bounce off this level to confirm support. If it doesn't hold next support is low $1 level. Last time when the price fell to the 61.8% fib level and find support a nice $1 bounce occurred , now it will be resistance around the 2.39/2.40 level . The gap at $2.79 will be filled at some stage, gaps get filled 90% of the times.
Next the daily graph reveals also a couple of points supporting the idea that a turning point is close namely that the commodity channel index shows divergence in the making and previously when the share price turned north similar divergence patterns were evident. The size of the bounce in the past was approximately $1 and thus it could be expected that the share price could reach $2.50 however will have to overcome the resistance at 2.40 as well as what resistance the down sloping trend line might offer. Weak resistance at $2 should move past this level. One caveat the daily volume is high that shows selling is not totally done with however the daily range is getting smaller relative to previous down days and thus the effort to push the share price down is becoming harder. So their could be another dip in the share price but difficult to see sustainable price action below $1.50.
The hourly chart for the last month reflects that yesterday was the first day since 2 March 16 where there was intraday uptrend after the initial fall in price in the first hour. It appears that despite the heavy volume that buyers are entering and sellers not so keen to mark the price down. If this price action continues today we stand a good chance of support holding and at least $1 bounce in the making if history repeats, if not then we meet again at next major support area at $1- $1.10 level. GLTA
