Technically, today was a wild and wooly day on the daily March chart. Having broken outside the confined range below the 50 day SMA as noted yesterday, there was a failure to follow through, and in turn an outside bullish engulfing pattern, where prices set lower lows, a lower opening, then higher highs and a higher opening than yesterday's highs.
Momentum is around neutral at 51.56 on the RSI, whilst the moving averages (9 EMA and 50 SMA) are still converging, but March will look to move above the 9 day. Higher prices on Monday are needed if this is to be a reversale of the 4+ cent correction from 57 cents.
marketing@alchempro.com
