Upside Objective Still Intact Despite Pullback
Although a Fibonacci retracement target was reached following the breakout, the pattern’s minimum objective has not been reached. This suggests that another leg up may follow a short pullback. An upper target zone is potentially near the long-term uptrend line, which previously marked trend support. The current upswing will test it as resistance; the question is how close price may get to the line. Also, the potentially significant 200-day moving average shows possible resistance around $3.43. It is close to the beginning of the falling wedge at $3.49, that triggered three weeks ago.
Weekly Close Risk Signals Pattern Resolution
Of concern is the potential for a bearish shooting star candlestick pattern to end the week. It is present on Thursday, but if strength returns before Friday’s close, the pattern may change character.
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