Channel Structure After Falling Wedge Reversal
A bullish reversal from a falling wedge pattern began the current advance with a late April breakout. The subsequent advance has formed a rising trend channel. The top boundary of the channel represents possible resistance. Note that price action has respected this upper channel boundary, suggesting it may continue to act as a near-term cap on rallies. A slightly higher target is near the beginning of the falling wedge at $3.49.
Support Levels in Case of Pullback Pressure
If a pullback occurs before new highs, watch for support near the 100-day moving average and Wednesday’s high, at $3.16 and $3.15, respectively. However, in the event of a deeper pullback, the lower rising channel line is a potential target. A minimum 38.2% Fibonacci retracement of the current upswing is at $3.13, which would represent a normal corrective move within the broader bullish structure.
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