Current Sentiment: Bullish

Support 1: 3.12                       Resistance 1: 3.20

Support 2: 2.92                       Resistance 2: 3.27

Since breaking out of the neckline resistance at 3.12 of the inverted head and shoulder, the market seems to pause its rally after hitting the psychological resistance price level of 3.20 and it may head into another round of bearish fall. However, base on the technical factors presented, the market may be finding a good area of value for a greater rally ahead.

• Prices manage to close above the support level multiple time which is also the previous neckline and price might break the support level 1 and find itself rebounding at the demand zone.
• Potential occurrence of a golden cross.
• Price has been trading above the 200SMA and 50 SMA.
• To add on, the support level 1 confluence with the 200 SMA. This create an impression that market may still favors the upside.
• The immediate uptrend line is still intact.

*Should there be any bullish reversal signals happen at the support 1 level, chances are it will rally higher from there without touching the demand zone.  

*Should price breaks the immediate uptrend line, the whole bullish call will be invalidated.

CHART LEGENDS

Red line = 200 period moving average

Blue line = 50 period moving average

Green line  = 22 period moving average