$4,103 Becomes Next Bearish Trigger

Despite the bearish implications of this week’s price action, support has held at $4,111, leaving open the possibility that a decisive rally above Friday’s high could lead to a test of resistance near the falling 20-day moving average near $4,285, which is also close to the week’s high of $4,285, or a minor lower swing high at $4,316. The downtrend prevails unless there is a recovery of the lower swing high and the 50-day moving average, currently near $4,326. Therefore, Friday’s failed push above resistance keeps the bearish structure intact, while a break below $4,103 would provide the next confirmation that the correction is extending lower.

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