Hello Chart Watchers!

Sooo... remember yesterday in my previous post, I said:

"... if the bears win, our new price targets will be at 50.8 cents first (because that was the swing low the last time we were here), but eventually fall down to 48 cents. "

I don't have a crystal ball I promise, but I do read charts, so this is why I share this so you can learn how to read with me too!

Anyway, on with our update!

Signs of the Bullish Structure Forming

Given the latest SPS price action, we're starting to form a broadening descending channel. This is typically a bullish pattern, but ONLY if the price breaks the upper trendline.

A hidden bullish divergence is also forming on the RSI. For those unaware, what this pattern is is a contradiction, with price going lower and yet RSI shows that buying and accumulation are starting to gain momentum. This usually signifies a turning point from bearish to bullish.

Does that mean we're out of the woods yet? As much as I want to say yes, unfortunately, we may have to wait a bit because we're still going through technical targets to the downside.

Patterns Upon Patterns: The 3 Step Ladder

Yesterday, I pointed out a descending triangle structure that formed on the 4 hr timeframe. Hence I said we have 2 targets if we lose 56 cents, we'll go through two steps down, one at 50 cents and one at 48. Guess what? That's exactly what happened didn't it? We broke down from 56, then 50 cents acted as support, but it broke down further and hit the technical target of 48 cents.

However, yesterday I didn't see that that triangle was part of a LARGER triangle that started to form on Oct 22 (my bad). Because we broke down from 56 cents, it means that larger technical target to the downside is still in play, which is currently sitting at 40+ cents.

This marks a 3 step move to the downside: 50, 48, and 40.

Are We Screwed?

Is there a way out? Yes. Remember, break the trend, make a new friend. That means, to invalidate the bearish pattern we'll have to rally and break the now resistance line of 56 cents. We also need to break the upper trendline of the broadening channel to get out of here. Until these two happen, I'm afraid to say: The pattern that's in play is valid until invalidated away.

That's all for today folks. We'll see in the coming days if we meet our 3rd technical target. Until then, take care, and HODL strong everyone! :)

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