Technical Buy

BlackGoldNatural Ltd – Weekly timeframe  (Update from 7  April 2017)

*Entry Price: 0.146      Stop loss : 0.103     Take profit : 0.195

Current Sentiment: Bullish

Support 1: 0.115                   Resistance 1: 0.159

Support 2: 0.104                   Resistance 2: 0.195

Price corrected as expected after the last update and went into a prolonged correction which lasted for 8 weeks. The correction seemed to have found some strong support off the confluence of 50% Fibonacci retracement level and 20/60 week moving average as it rebounded off the support area aggressively since the week ended 02/06/17.

Moreover, the subsequent bullish follow through on the week ended 09/06/17 had triggered the 02/06/17 Bullish Outside Bar suggests the correction since 07/04/17 has ended. Additionally, the bullish break above the pullback line was also backed by increasing volume.

Expect the uptrend to return next for price to test the 0.159 resistance area followed by 0.195.