1. Support @ ~0.66 2. Resistance @ 0.96 3. 8-day EMA (Dynamic support/resistance). The resistance has held since Jan 9. 4a. Bullish pin bar formed at key support level. Price retraced 50% of pin bar, which is not unusual. 4b. Potential reasons not to take this as a buy signal: -Counter trend -Pin bar spans both support and resistance -Subsequent failed test of resistance @ 0.96 (yesterday and today). (See 5) -Strong downward momentum (see 6) -Poor risk/reward. 6. EFI {Close (current period) - Close (prior period)} x Volume-------------EFI has been negative since Jan 10. MACD lines also crossed around this time. ?. Prices are likely to soon retest support @ 0.66
Things to look for (bullish) -break of resistance (horizontal levels and/or break above EMA) -higher highs, higher lows -counter-trend trades near support with good risk/reward potential and strong signals. -EFI heading for positive territory. -MACD cross