Capital World Ltd – Daily timeframe
*Entry Price: 0.088 Stop loss : 0.070 Take profit : 0.115
Current Sentiment: Bullish
Support 1: 0.073 Resistance 1: 0.094
Support 2: 0.071 Resistance 2: 0.115
Since May 2017, price has been falling precipitously in a downtrend without much support. However, the current bullish price action might be signalling the formation of a near-term bottom soon.
Price has been consolidating between the 0.081 range high and 0.073 range low more recently since October as the volume picked up significantly showing a growing interest. Moreover, a bullish breakout above the 0.082 range high finally occurred on 02/11/17 suggests a reversal higher next. In addition, the bullish break was also backed by surging volume.
If the bullish momentum sustains, the 0.071 low on 23/10/17 could very well be the near term bottom. Expect price to bounce higher next to test the 0.094 resistance area followed by 0.115.
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