Price is below the 20 period moving average and is now testing a support line(light blue 116.68) which is a key support due to the fact that it acted already as support and resistance in the past for a few times.
This area is also a convergence point between the support line(116.68) and the 56 period moving average(dark blue) and downtrend line(light purple)....
After a long uptrend, the price tested the monthly uptrend line(light green circle (10.28) and price is going down passing the closest support line((10.16) and it had testing already twice the next support line 10.01 which is also a convergence area with the 56 period moving average(10.05).
If price respect this area it will continue the uptrend line.
But if the...
After four day going up, it show one day down, it may not correct to the fibonacci retracement 0.618 level (gray line 6.99) or it can resist in the exponential moving average of 12 candles (7.32 yellow line) before start growing again.
Strategic, will wait it to test the area between the gray line(6.99) and yellow line(7.32) to confirm that it will support the...
In month time line it drops to little bellow the 0.68 range of Fibonacci, testing the orange support line. If it holds in the support and start to growing again possible 67% gain to the highest last pic.
If it does not resist and break the support it may drop to 21.00 which is the range of the exponential moving average of 56 periods.
Strategy will be waiting...
PCAR3 is two days going down, as it is now bellow the 8 week average, it will probably reverse at first yellow line that is the month 0.38 Fibonacci retracement. If it reverse the price could reach to 41 which was the last top, or higher with it is able to win the 41 resistance.
