Surveying the weekly price chart for the past two years in this stock would show that there's been significant moves in both directions with the latest rebound off the lows providing opportunity for trend followers to profit again immediately after a break of the downtrend.
Price action has however slowed down since July 2016 with the highs unable to push further and motivate buyers to close the weekly candles above the all important $74 mark. This level comes into play after a failure of support last year prompted the stock to slump to new lows.
Having only just come back into focus, the resistance being offered at these levels suggests the line identifies polarity with the possibilities of an equivocal outcome that'll be determined by the failure or success of either buyer or seller.
The moving averages of 50(yellow line) and 200(blue line) shed some light on what we could expect from price movements in the weeks ahead. The 200 MA falls closely below the line of polarity at $74 with the 50 MA showing a slight gradient but looking more flat than anything else. This would hint at a range bound environment set in place which is further evident when we look at the stochastic shooting up from oversold and the positioning of the price with the conclusion being made of a lack of substance in the move upwards.
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