Monthly chart: ION retraced from its peak at 4.18 on 9/28/2015.
Reasons for the bearish action for the past 3 days:
- Bearish volume divergence
- Bearish RSI divergence
- The 4.18 level was a strong resistance, being the 50% reverse Fibonacci level from its peak on January 2001 on the monthly chart.
Daily chart: From 9/28/2015 to 9/30/2015, ION failed to close above 3.92. This key level is the 50 line between the low of 3.19 and the projected box target for box D, based on the increment of Box C.
Despite the bearish price action for the past three days and its inability to close above the 50 line of Box D at 3.92, ION has some bullish things going for it.
- Price closed above 23.6% Fibonacci level on the Daily chart today
- Low volume correction today.
- RSI daily = 77 < RSI weekly = 95 . RSI strength on the higher time frame is favorable.
- RSI levels are parabolic on both daily and weekly time frames using 14/30/70 as well as 30/30/70 settings
Daily RSI: as of Sept 30 2015
Weekly RSI as of Sept 30
4. No sell signal had yet been generated from Marlyn’s curves.