Support 1: 54.42                     Resistance 1: 30.00

Support 2: 47.09                     Resistance 2: 34.07

SKYY has just completed its bullish 3^rd minute wave and the current corrective abc wave might be near to the stock’s final correction price level. Base on the following technical factors, we believe that the stock will resume its final bullish phase as the last 5^th wave.   

• The last candle’s low rejected the 200SMA (simple moving average) level. Although the candle is a strong bearish candle, the failure to close below 200SMA signify that the price may want to rebound at the moment.
• The stock price is near to the Fibonacci extension of 127.2% of Fib extension level of wave a-b, which is traditionally the wave c extension level. However, should it extend to 1.618% at 51.00, then this bearish corrective wave count will evolve into a the 5^th minute wave.
• Price closed above the 50% retracement and 127% extension confluence zone. This signifies that the rebound may happen soon as the 50% retracement level is traditionally the wave 4 rebound area.

*Should the stock price fall bellows the support zone 1; then the bearish wave might be extended to 51.00.

CHART LEGENDS

Red dotted line = 200 period moving average

Fibonacci legends

Red Horizontal Line = Fibonacci extension of a-b at 127.2%.

Purple Horizontal Line = Fibonacci retracement of wave 2-3 at 50%.