Resistance Layers Above Recovery Zone
Although an advance above Monday’s high of $3.16 would show strength, key short-term dynamic resistance near the 10-day moving average at $3.18 represents resistance, since it was confirmed over four days last week. However, the lower swing high at $3.25 is key near-term structure resistance, and a recovery of that level would confirm a reclaim of the 10-day moving average.
Longer-Term Trend Structure Still Intact
Potentially more significant is the reclaim of the 100-day moving average at $3.12, given its long-term nature and the failure to break below it, at least so far. It should also be mentioned that the 20-week moving average has provided a dynamic support area near the lows of the prior couple of weeks, and it did so again on Monday. A successful test of support near that longer-term trend support zone follows a reclaim of that indicator three weeks ago. Once prior resistance shows up as an area of support, the rising trend may be ready to resume. Monday’s bullish price action is suggesting a similar outlook.
