Quick look at the
AR9
chart.
Lookback
Current situation
AR9
chart. Lookback
- After a cup-and-handle and subsequent break-out in July,
AR9
hit a high in mid-August. It has since entered a four-month downtrend (Trend 1) and is currently in a period of consolidation.
- Strong support was immediately found at the 0.618 fib level ($0.36) and this has held despite being tested multiple times.
- While in a moderate uptrend (Trend 2),
AR9
failed to break the 0.236 ($0.51) and 0.382 ($0.455) fib levels. This was accompanied by a drop-off in volume and a prolonged reduction in MACD.
Current situation
- Current resistance (Resistance 1) is at the 0.5 fib level ($0.41) and this has been tested multiple times in the past three months.
- Of slight concern is the flip of EMA 20/50 from support to resistance, and up until today this looked to have returned to a support level.
- Volatility is shown to be high as per the BBQ-Squeeze. This may indicate a break-out is about to occur. The MACD has also shifted back to an uptrend and is heading into positive territory.
- Performance against Resistance 1 and Trend 1 will be key to
AR9
s performance for the rest of the year. A movement above EMA 20/50 would be a positive sign, combined with the volatility and MACD indicators.