Spackman Ltd – Daily timeframe
*Entry Price: 0.057 Stop loss : 0.065 Take profit : 0.047
Current Sentiment: Bearish
Support 1: 0.054 Resistance 1: 0.062
Support 2: 0.047 Resistance 2: 0.069
Price has been moving in a steady downtrend since March 2017 after the 20 day moving average crossed below the 60 day moving average on 14/03/17. Since the bearish crossover, the 20 and 60 day moving average has relentlessly capped the upside move. Each correction higher was firmly rejected by the 20 and 60 day moving average as the long-term downtrend retook control shown by the highlighted boxes.
As price broke another new 52-week low recently in June 2018 at 0.047, price started to enter into a correction phase higher. However, the bearish sentiment remained intact as the 60 day moving average once again rejected the upside move. Price failed to close above the 60 day moving average and 50% Fibonacci Retracement level since 23/07/18. Further decisive move from the bears is exhibited on 26/07/18 as price broke below the pullback line suggesting for a continuation move into the long-term downtrend.
Expect price to head lower next to retest the 0.054 support area followed by 0.047.
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