You can see the large on the chart. As you can see we are getting near the bottom of it. You might also see that a Fib on there. We're very close to the 78.6 level.
Now if you look really close, there are other lines in there. The bright light blue is a 100. The purple is a MA 50. Yellow MA 34.
Now, why might it go down?
- We are nearing the bottom of the on the daily.
- We've come up to the 100, 50 and 34 level. If you look at what price has done near these levels in the past, you could see signs of a drop.
How far could it go down? The MA 200 is sitting at 1.6500. Since MA 200 could be considered a 'fail safe' type of line, then we could consider 1.6500 a place the price could go down to.
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