The aforementioned minor support zone is the last support before the 200-day moving average at $63.28, which controls the long-term trend. Additional long-term support is the $61.00 main bottom from March 23 and 50% of the all-time high at $60.83.
The market received a boost on Wednesday when buyers overcame the long-term 61.8% level at $74.63. This move created the upside momentum needed to challenge the 50-day moving average at $77.57. This is the major barrier that has to be recovered in order to accelerate the rally.
From April 14 to April 21, buyers toyed with the idea of an upside breakout, even reaching $83.06, while the indicator sat at $78.93. This $4.13 breakout wasn’t enough to sustain the rally and prices retreated. So when I say we’re going to need buyers to break out over the 50-day MA with conviction, in this case it appears it’ll have to be by more than $4.13…
