Trouble Below $124
- Now trading below all moving averages including 50EMA and 100SMA
- Intermediate downtrend line has been suppressing the stock for sometime now
- Break below $124, $115 is imminent
- Looking at the big picture, we just couldn’t able to make higher lows
- Looking at the intermediate term, we have been creating lower highs
- Break below $115, around $105 is probable
(Daily RSI, MACD)
RSI: Realize that once the downtrend gets established, RSI never get up to the upper band but oscillates in the lower band vicinity
MACD: Below the zero line, bears territory and we are now entering that zone
This is the last level if its ever going to bounce as the Fib. levels suggest. But as we break below this level, things could get ugly.
H&S Reversal Pattern
This is another troubling sign while making lower highs since the peak on 8/28/13 and that process, we have created H&S reversal that could add to the fuel to the selling pressure. Again $124 is the pivot level on this H&S pattern (neckline) which confirms the price other analysis we’ve done on this post. $116 is the next target when we break below $124.