Price consolidation has been the flavour of the month over the past three months after a protracted downturn in sentiment. The 50 day moving average(yellow line) has flattened out substantially with the line now acting as an indicator of polarity.
The recent move by price over the 50 DMA was a positive signalled for bullish traders however yesterday's sinking performance placed a damper on forward looking optimism for the time being.
Support and Resistance will be key to the direction of price in the weeks to come with the test of support at $34 producing rebounding price actions while resistance at $40 providing enough opposition to overcome a new found positive sentiment building into the stock.
Traders will be aware of the break downwards of the RSI below 50 and may have seen this as a sign of a weakening hand on behalf of the buyers spurring on demand but if price action is able to retain it's position above the 50 DMA in disregard to this there's likely to be a big shift in the price in an upward direction.
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