MXRF11 - Possible downtrend start
After a long uptrend, the price tested the monthly uptrend line(light green circle (10.28) and price is going down passing the closest support line((10.16) and it had testing already twice the next support line 10.01 which is also a convergence area with the 56 period moving average(10.05).
If price respect this area it will continue the uptrend line.
But if the price do not respect it will probably indicate a downtrend start.
It had a high probability to reject and going down due to new day top lower than the last day, another point showing possible downtrend start.
Confirming the downtrend the price possible will test the 9.89 support and worst case the 9.25 that is a monthly convergence between a monthly support line and monthly 20 period moving average.
Strategic I will wait the confirmation and if a downtrend start I will wait it hint the résistance line to increase my position.
If price respect this area it will continue the uptrend line.
But if the price do not respect it will probably indicate a downtrend start.
It had a high probability to reject and going down due to new day top lower than the last day, another point showing possible downtrend start.
Confirming the downtrend the price possible will test the 9.89 support and worst case the 9.25 that is a monthly convergence between a monthly support line and monthly 20 period moving average.
Strategic I will wait the confirmation and if a downtrend start I will wait it hint the résistance line to increase my position.
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