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 important level historically and a bounce here should see a retest of the aforementioned resistance. A close above 30p opens up targets in the 40 to 48p area, notwithstanding the previous all time high price of 36.75p which was only hit outside the normal spread.
There are lots of patterns in the longer timeframe weekly charts, all of which point towards some decent upside potential for SXX.
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 important level historically and a bounce here should see a retest of the aforementioned resistance. A close above 30p opens up targets in the 40 to 48p area, notwithstanding the previous all time high price of 36.75p which was only hit outside the normal spread.
There are lots of patterns in the longer timeframe weekly charts, all of which point towards some decent upside potential for SXX.