We finally got that big move that’s been the hot topic for the last few weeks. Unfortunately for the bulls, it was a nasty drop. However, price action may be stabilizing near some key levels of support:
1. Selling pressure halted at 200-day MA
2. May be finding support near LTS-1 (long-term support 1)
Despite these two levels of potential support, we may still be trading in a descending channel (blue parallel lines), and if LTS-1 does not hold (along with the 200-day MA), we may see further weakness down to LTS-2. Remain vigilant.
1. Selling pressure halted at 200-day MA
2. May be finding support near LTS-1 (long-term support 1)
Despite these two levels of potential support, we may still be trading in a descending channel (blue parallel lines), and if LTS-1 does not hold (along with the 200-day MA), we may see further weakness down to LTS-2. Remain vigilant.