AR9 - Consolidating with solid support

8 בדצמ׳ 2020

Quick look at the AR9 chart.

Lookback

• After a cup-and-handle and subsequent break-out in July, AR9 hit a high in mid-August. It has since entered a four-month downtrend (Trend 1) and is currently in a period of consolidation.
  
• Strong support was immediately found at the 0.618 fib level ($0.36) and this has held despite being tested multiple times.
  
• While in a moderate uptrend (Trend 2), AR9 failed to break the 0.236 ($0.51) and 0.382 ($0.455) fib levels. This was accompanied by a drop-off in volume and a prolonged reduction in MACD.
  

Current situation

• Current resistance (Resistance 1) is at the 0.5 fib level ($0.41) and this has been tested multiple times in the past three months.
  
• Of slight concern is the flip of EMA 20/50 from support to resistance, and up until today this looked to have returned to a support level.
  
• Volatility is shown to be high as per the BBQ-Squeeze. This may indicate a break-out is about to occur. The MACD has also shifted back to an uptrend and is heading into positive territory.
  
• Performance against Resistance 1 and Trend 1 will be key to AR9s performance for the rest of the year. A movement above EMA 20/50 would be a positive sign, combined with the volatility and MACD indicators.