Price broke and closed below the cloud in the previous trading session, changing the chart outlook to bearish. Conversion line and Base line had a bearish crossover and is hinting of a bearish price trend ahead. Lagging Span is below price of 26 days ago and below the cloud, confirming the bearish price trend. MACD is bearish and is hinting at a bearish price trend. If price is unable to move above the cloud, it could be heading towards the previous low support at $70.66.
Price tested the cloud in the past week, dipping to a low of $84.73 on 14 September. However, the price decline was halted by the lower edge of the cloud as well a previous resistance turned support line. The price correction ended after price broke above the cloud in the previous trading session. Lagging Span is currently below price of 26 days ago but above the cloud. MACD has a bullish crossover and is hinting of a bullish price trend. We think price is likely to move higher to $98.80 in the next 2-3 weeks based on a rectangle chart pattern price target.
Outlook Price broke below the cloud back on 27 October and reached a high of $55.14 on 9 November. A price correction managed to bring price higher to $59.08 but the rally was capped by the upper edge of the cloud as well as the Base line. As a result, price has declined below the cloud again. Capped by the Conversion line at $57.60, price could be about to move lower to the next support level at $53.38. Conversion and Base lines had a bearish crossover earlier, hinting of a bearish trend. Lagging Span is below price of 26 days ago and below the cloud at the moment, confirming the bearish trend. MACD has a bearish crossover and is likely to move lower, hinting of a bearish price trend ahead. We think the corrective rally is over and price is likely to move towards the support at $53.38.
Price tested the top edge of the cloud on 11th of June 2019 but failed to break above the cloud. Over the next few days, price had declined lower below the bottom edge of the cloud. A closing below the cloud yesterday was the signal of a bearish trend. If price stays below the cloud, it is likely to test the previous low of $49.86 again. MACD is still bearish despite the rally that brought price to the top edge of the cloud. Stochastic is turning down after reaching the overbought extreme zone.
Price overnight pushed into the cloud in a large and strong bullish candlestick, hinting of a possible price breakout and change in trend. Both Conversion and Base lines also had a bullish crossover the previous day, confirming a bullish trend. MACD is pushing above the zero line and moving higher but Stochastic has reached the overbought zone. If price can stay above the base of the cloud, there is a good chance price it is likely to progress higher to test the next resistance at $13.40
