vil chart

You guys are probably not going to like me for my analysis but here it is:

On a daily chart we see price is in a steady ascending channel. We've had two cup and handle patterns that Wanelad has pointed out which are very bullish patterns. But the breakout from the cup and handle yesterday has not carried on today and it looks to me like a reversal is in place. Theres a long upper wick which is a shooting star candlestick which is bearish and price has hit resistance of the very upper band of the channel. Have a look back through the chart and see what happens every there is a long upper wick near resistance.

MACD is showing bearish divergance. This is another reason why I think a short term trend reversal is on the cards. Medium term trend up, short term trend down. But in fact divergence like this on MACD is a hint that this ascending channel is weak. Until the bottom trend line broke, I wouldnt worry about it too much, but its certainly somthing to watch.

Stochasics are trending up making a higher swing low but is getting into oversold territory and looks to break down soon.

RSI is a bit of a mixed bag. Its making higher lows, but has just turned down at the horizontal resistance that has marked turning points in the past. It needs to break this resistance. The higher lows are a good thing but doesnt necessarily mean it will break to the upside.

Accumulaton/Distribution is doing just fine, converging with price movement. This is bullish.

All in all, I like the bullish patterns in this chart, but I just cant see it breaking the top of that channel yet. I expect price to return to the bottom of the channel from here with say 45c a nice round target. 45c is also strong horizontal support from years ago. The larger trend is still up so its all good medium term. Just watch that divergence with MACD.....