The picture is quite bearish. The price is well below the 50 and 200-day moving average. Moreover the faster MA crossed the slower one this week, and this is a definite long-term bearish signal. When we have a look at the chart, we can easily identify a perfect head-and-shoulders pattern from february. The price takes a rest exactly on the neckline. And it is ready to break down. In my opinion, if the price breaks the neckline, we’ll have a perfect short-setup. MACD also gave sell signal this week. The high volume below the red candlesticks supports the bearish outlook as well.
Below 1.60 it will probably fall off quickly. The fall of the course my stop for a while around 1.40, but i think, that the first really tough support is found at 1.25. The price may bounce from this level. If this support would also fall, then only the 0.90-1.10 zone could mean a longer-term support.
On the other side, SIRI should rise above the moving averages the and 1.85-resistance. I think, that the chance for this scenario is less probable.
After breaking down the price reached the above mentioned tough support within the margin of error (1.27). It bounced from the support and now it consolidates below the neckline of the head and shoulders pattern. In my opinion it will turn down again soon.
VálaszTörlés