Resistance Rebuilds Beneath Broken Trend
The 50-day moving average, currently converged with the uptrend line, is key dynamic resistance near $99.73. A sustained rally above that indicator would show returning strength. However, since it failed as support concurrent with the uptrend line, it marks key resistance for further strength that might test prior support as resistance. The minor bounce on Tuesday can be considered a successful test of resistance near the trendline.
Bearish Channel Extends Downside Outlook
There is also a falling channel on the chart that suggests a continuation to the downside, since a bearish reversal followed the most recent touch of the top channel boundary. That resulted in a lower swing high of $109.74. Once a reversal occurs from one side of the channel the other side becomes a possible target. That would validate the possibility of the 100-day moving average being reached, since it represents a higher support zone than the lower uptrend line.
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