Price broke and closed above the cloud in the previous trading session, changing the chart outlook from bearish to bullish. Conversion line and Base line had a bullish crossover and is hinting of a bullish price trend ahead. Lagging Span is above price of 26 days ago but is below the cloud. MACD has turned bullish. MACD had given a bullish divergence warning earlier when price hit the low at $35.59. We think price is likely to be heading to a previous resistance point at $49.68.
Outlook Price tested the high of $50 for three times and on the third occasion, it managed to break above but was unable to sustain above the resistance. Following the third test, price declined for three consecutive days and is now near to the edge of the cloud. We think price is likely to continue downward over the next couple of weeks. While Conversion, Base and Lagging Span have yet to give a sell signal, the price movement looks like a consolidation is about to end. MACD is about to experience a bearish crossover just above the zero line, signaling a bearish trend ahead as well.
Outlook Price declined below the cloud last night and this could be the start of another decline to come. Conversion line crossed over the Base line to the downside last night as well. This bearish crossover is a sign of more downside to come. Lagging Span confirms the bearish trend as it is below price of 26 days ago as well as below the cloud. MACD is also showing a bearish trend. The fast line has crossed over the slow line, forming a bearish crossover around the zero line. We think price is likely to decline to $9.00 in the next few weeks.
