Weekly Structure Turns Supportive
The bullish indications of Monday’s advance are also present in the weekly chart. An inside week breakout triggered on Monday, which further confirmed a reclaim of the 20-week moving average. That average has represented dynamic resistance since it was broken in early February.
Upside Targets Stretch Toward Key Resistance Zones
An upside breakout of the wedge indicates a potential upside target around $3.48, which is its beginning and a lower swing high. But the long-term 200-day moving average is due to be tested as a resistance zone, given the failure of support at the long-term uptrend line in January. It is now at $$3.43 and has started to stabilize by starting to go sideways. The uptrend also represents key potential resistance as well, but the 200-day moving average would need to be reclaimed first.
That leads the 200-day zone at risk of being broken to the upside. There is also the 61.8% Fibonacci retracement of a prior decline at $3.52, providing another upside target zone if the buyers can retain control. Monday’s bullish price action suggests that they will.
