This is the update to my two posts of May 31st.

The first chart here is the long term, monthly bars chart, updated through July 2nd.  The June price candle supported at S2, but the first two days of July are showing a definitive break below S2, which indicates that we’re in a new downtrend on this timeframe.

The second chart here is the intermediate term, weekly bars chart, also updated through July 2nd.  This strong downtrend, which started in early May, has now spawned R2, the second resistance curve in its hierarchy.  Last week’s action was strongly down, but how it acted at the end of the week as it encountered Old R3 and Old R4 is worth noting.  Although it broke below Old R3, it then stopped – supported – at old R4, and popped up to close the week at Old R3.  So, this could be the start of an upward correction within this overall downtrend.  If such an up move develops but remains below the new R2, then the overall trend is still down.

Tweet This Post