The 112p area proved resistance as expected with a high yesterday of 111p. This was sold into leaving a closing SP slightly below what I've labelled as a wave 4 high which gives us some uncertainty as to future direction in the short term.Today's low (so far) was bang on the 50% Fib of the rise as shown by the 30 minute chart below. The interesting thing on that chart is that the rise looks to have 5 waves to it so could be bullish. Note how there was a bearish RSI divergence on the 30 minute chart at that 112p resistance and a bullish one on the daily at 88.75p. As I've previously posted, I can't short this so my strategy for going long is to either wait for the main uptrend support around the 83p mark if this is bearish, or to go long on a break above...

Avocet Mining looks to be in a pretty bad way with no sign of the downtrend in sight. It's continued to make lower lows and lower highs and the bullish RSI divergence pattern which gave the last rise to 16.75p has broken down. In fact (and thanks to rcmacf for this), the lower high at 16.75p came with a higher high in RSI which is known as a Momentum Discrepancy Reversal Point (MDRP) and is an indicator of trend continuation.The only respite here is that fact that the nearby figure of 11.5/12p was where the SP sat for 3 months at the end of 2001 into early 2002 so there is a support there albeit from a long time ago. If that fails then there's no knowing where this will go as there are no supports below there that I can see.Should 11.5/12p hold then look for a bounce followed...

Shares like Borders and Southern which have suffered a massive gap down on a fundamental shift are always tricky (so, too, who have a massive gap up!) so we have to be very wary, particularly with AIM stocks anyway.That said, there's a very shallow uptrend support in play here from the 14p low on 18/07/12 and this is mirrored by the RSI uptrend. This price support sits at 15.68p today so may be worth a long there with a stop below 15p (the low before last for safety). What this really needs, however, is to close above the downtrend formed by the lower highs since the gap down. That's at 21.52p today, falling daily. Should that occur, the immediate resistances are at 25p, 28p, 36.25p and 47.25p before we get to the gap at 60.25p. Clearly, a long way to go and I'd like to see the RSI break out...

There's a fair bit going on in this daily chart of Sirius Minerals but it'll be worth covering.The drop back from the 30p high was halted at the 61.8% Fib at 18p and it went on to give an early downtrend breakout signal with a breakout of the RSI a few days earlier. A backtest of both price and RSI downtrends followed before a healthy rise up to some significant resistance at 28.75p.This is where the main downtrend and the gap coincided so no surprise the SP reversed off this level. Note, too, how the main RSI downtrend resistance from all the way back in November 2011 also came into play adding a 3rd layer of resistance, not to mention the 29p and 30p previous price highs.I'm now waiting for this to retrace to around the 61.8% Fib level of this last rise at c. 22.5p. This has been an...

Well, that happened a bit quicker than I expected. 22.5p target hit precisely today so that should set up some consolidation around the current 24-26p levels before another test of the key 28.5-30p area.For higher prices the level to break remains that main downtrend, gap and resistance area. It should manage it next time round as that will be the third attempt, but it's so strong that it may hold off one more assault. Original link...