Potential Upside Targets
During the recent decline in July there was a sharp drop that showed an imbalance of orders. Such periods can exhibit gap-like behavior and are often eventually filled. The top of the resulting range is near the 78.6% Fibonacci retracement of the prior decline at $3.20. That level could become an increasingly significant resistance zone as the 200-day moving average, currently near $3.28 and falling, moves closer to it. For now, however, the more immediate test is whether the 50-day moving average can continue to hold as support. If it does, the failed test near $3.03 may ultimately prove to be a pause within the broader bullish reversal rather than a change in trend.
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