What Would Change Bearish Outlook?

Price behavior suggests a continuation of the bearish trend until there is evidence to the contrary. That wouldn’t occur unless there was a sustained reclaim of the 50-day moving average. Since that average may be at or near Monday’s high before an upside breakout is attempted, it may have greater significance. The breakout of consolidation, along with the reclaim of a key moving average, would suggest that an advance from there may have greater success than if that 50-day moving average was approached.

Above the 50-day moving average is a lower swing high of $2.98, a key resistance area from structure. It is supported as resistance by a higher swing low from May. That wouldn’t change the overall bearish technical outlook represented in the larger bearish structure. In that case, the current developing symmetrical triangle pattern could be interpreted as a bearish pennant, could add to momentum if a breakdown below last week’s low of $2.69 occurs.