Price tested the upper Cloud resistance after its breakout of the descending
long term trendline. It bounced off it and has fallen sharply to the lower end
of the Cloud and in confluence with the trendline, a test of it from above.
Bulls would like to see a strong rejection off the support and some signs of
that is now showing. However, until price breaks above the SMA200 again,
currently at 77,40, there is still a pending risk of a bearish breakout, that
would expose the low at 45. Technically, it is normal to see a retest of a
broken trendline from above, and the same goes for the test of the lower
Cloud after a failure to break above it. Since price is stuck inside the Cloud
as of now, trend is regarded as neutral, but with a slight bullish bias, due
to the trendline breakout. A break above the Cloud would be an important
technical event that would open up for a move towards 104.
long term trendline. It bounced off it and has fallen sharply to the lower end
of the Cloud and in confluence with the trendline, a test of it from above.
Bulls would like to see a strong rejection off the support and some signs of
that is now showing. However, until price breaks above the SMA200 again,
currently at 77,40, there is still a pending risk of a bearish breakout, that
would expose the low at 45. Technically, it is normal to see a retest of a
broken trendline from above, and the same goes for the test of the lower
Cloud after a failure to break above it. Since price is stuck inside the Cloud
as of now, trend is regarded as neutral, but with a slight bullish bias, due
to the trendline breakout. A break above the Cloud would be an important
technical event that would open up for a move towards 104.