Stellar seeks out previous low
Price tested the 61.8% Fibonacci resistance level a couple of times and was held off by selling interest. This line became a key area of selling interest, and should remain strong going forward. now becomes critical resistance moving forward.
Momentum for trend is starting to kick in gear for the bears. The Average Directional Index (ADX) line is increasing at the same time the red negative directional index is staying elevated. The bears started to take control right at the time the dotted trend line was busted to the downside. Internal strength for a bearish trend has continued to increase since.
The price move below the 61.8% Fibonacci level has made the golden ratio critical resistance going forward. This move sets up a full retracement target to the previous low before strong long-term buying is likely to return. Also, the trend line break objective, marked with arrows, matches up nicely with the full retracement level. This creates a spot where buyers are likely to set up camp to build a new long-term floor in the market.
Staying on the sidelines for now waiting for the previous low area to hit.
Critical Resistance: $0.2404
Key Resistance: $0.2130
Key Support: $0.1802
Critical Support: $0.1710
Momentum for trend is starting to kick in gear for the bears. The Average Directional Index (ADX) line is increasing at the same time the red negative directional index is staying elevated. The bears started to take control right at the time the dotted trend line was busted to the downside. Internal strength for a bearish trend has continued to increase since.
The price move below the 61.8% Fibonacci level has made the golden ratio critical resistance going forward. This move sets up a full retracement target to the previous low before strong long-term buying is likely to return. Also, the trend line break objective, marked with arrows, matches up nicely with the full retracement level. This creates a spot where buyers are likely to set up camp to build a new long-term floor in the market.
Staying on the sidelines for now waiting for the previous low area to hit.
Critical Resistance: $0.2404
Key Resistance: $0.2130
Key Support: $0.1802
Critical Support: $0.1710
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