A firm SUPPORT in the zone of $5.00 – $5.50 setting a reference level for us to carry out our analysis with ILU on the downside, and $8.00 – $8.20 on the upside. I have drawn Red support and resistance lines at both levels.
My aim with this type of analysis is to try and anticipate a turning point on a reversal from a support. This said, it doesn’t mean that ILU will test the zone of support @ $5.00 – $5.50. My view is that, we are likely to be in PHASE D of a potential WYCKOFF accumulation in this weekly TF at present. If that is the case, short term bias may be to the upside.
What does the bar analysis tell me looking at the last couple of bars ? A bearish pivot at the penultimate bar and a potential formation of a MINI TR within the larger TR may unfold as a corrective pattern. A FIRM SHORT TERM SUPPORT @ $6.60 after couple of tests is loud and clear in the last couple of weeks. On the upside, $8.00 -$8.20 as a resistance.
Is the close above of the down trendline significant in the current week ? I think so.
Analysis continues with ILU as the bigger boys/girls ( funds/smart money) keep up with their potential accumulation process…
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