Analysis:
The current resistance of $300 has always been a key resistance and will be a key support in the future. There is a rule that states that a breakout above a resistance must hold for at least 3 days. When applying our long-term and short-term signals and sentiment, we should also take these into account. Therefore price testing the $300 level needs to hold also for 3 weeks and 3 months to find solid footing. If you look at the weekly chart you will see that we are now on the 4th and decisive week following a 3rd week that rested on the $300 level.
If we break below then you can see why I had the $240 level in mind as well.
Foot Note:
When analyzing this chart, you will notice the Slow Stochastics indicator. I find this indicator to be the complete indicator compared to the vast majority out there. Lets explore the terms I will be using. Also use the indicator based on its respective time-frame:
Time-Frame:
1 hour - Lasts 1 hour - Few days
Daily - Last Days - Week(s)
Weekly - Last Week(s) to Month(s)
Term used:
OB - OverBought (above 80)
OS - OverSold (Below 20)
Bullish - Above 50
Bearish - Below 50
Trend - Cross up in both channel line or Cross down in both channel line.
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