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The 50% retracement at $3.73 marks the beginning of a possible support zone that goes down to the 61.8% Fibonacci retracement level at $3.56. Last week\u2019s low at $3.55 marked support for the week and is part of the uptrend price structure of higher weekly highs and higher lows.<\/p>\n
It therefore has significance as a drop below it provides a bearish weekly signal and could lead to a drop towards the lower internal uptrend line. Since the weekly low aligns with the 61.8% retracement at $3.56, it deserves extra attention. In addition to a lower trendline target, there is a price zone from $3.32 to $3.31, consisting of the 20-Week MA and the 78.6% retracement, respectively.<\/p>\n
Within the $3.73 to $3.56 price range is the 50-Day MA at $3.71. That looks to be the next key potential support level, particularly since the 20-Day MA has converged with the 50-Day as of today. Both moving averages are rising and are on track converge with the 50% retracement level. Unless there is a sharp drop before the end of today\u2019s session, this week will end as an inside week with a closing price near the lows of the range.<\/p>\n
Moreover, February ends today with the sixth consecutive month of higher monthly highs and higher monthly lows. However, the month is set to close in a relatively weak position near the midpoint of the month\u2019s trading range, which is $3.82. The prior two months also ended in a relatively weak position, especially January, which closed near the lows for the month. In addition, the 50-Month MA was exceeded over the past few months but in each case the month ended below the 50-Month line, now at $3.85.<\/p>\n