The blue lines show the text book rising wedge, overbot conditions and negative divergence that caused the spank down. Purple lines show the positive divergence bounce in May, but money flow was not agreeable to the bounce. 350 is very important, price is currently testing this area, if price fails then the second leg will be in progress. If price can move up above 350, then the 50 MA 354 area should provide a ceiling. There are three gaps above that will need addressed at some point. You can adjust the bear flag target if price drifts upwards over the coming days, simply subtract 38 for the start of the second leg, say, if price fills the gap above and makes it to 358, then the bear flag would target that 320 support level instead of 313.
The 20 MA is under the 50 MA which is bearish, if price falls under the 20 MA that will start to signal the all clear for the bear flag to run the second leg lower. Watch price reaction at the critical horizontal support levels shown on the chart. Monitor the RSI 50% level for the days ahead.
This chart also shows an H&S which has the head at 370, neck line at 335, this targets 300. This 335 to 350 range is critical with price breaking out from one side or the other, the bulls win above 350, the bears win below 335. Current projection is sideways to sideways down moving forward, bears win. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.
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