Bearish breakout underway with price bouncing lower from the downwards trendline, breaking through 2 consolidation area in the process. Stochastic also agrees with readings breaking below 80.0 after hitting the “Overbought’ region.
Weekly chart shows price dropping below the 50% Fib retracement, opening up 61.8% as the next significant support. Previous swing-low around 5.51 (Feb ’12) and Doji candle back in Oct ’11 could still provide some interim support against downside movements.
Short-term Stochastic suggest a potential pullback should readings hit back above 20.0. However, overall tone will remain bearish especially if readings swing back to Overbought while price fail to move back above the 50.0% Fib.
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