Spackman Ltd – Daily timeframe (Update from 15 September 2017)

Current Sentiment: Bearish

Support 1: 0.109                   Resistance 1: 0.127

Support 2: 0.099                   Resistance 2: 0.134

Price remained depressed after the last update as the downtrend was relentlessly held down by the 20 and 60 day moving average. The confluence of 61.8% Fibonacci retracement level and 0.127 resistance area also seemed to be acting as a ceiling. There were two more occasions where the bulls tried to take price higher, but they were halted by the 60 day moving average as price forms new lower high points further justifying the downtrend.

The current bearish price action is showing a sudden acceleration of the bearish momentum after price rejected the 60 day moving average recently on 12/10/17. The bearish follow through on 19/10/17 succeeded in breaking price below the 0.115 immediate range low and 20 day moving average with increasing volume suggests the resumption of the long-term downtrend next.

Expect price to head lower next to test the 0.109 support area followed by 0.099.