ASN today saw a high volume down bar closing at the bottom with a volume of 9.3M producing an 8 point spread. This is the second highest volume to date beaten only by yesterdays bar. Compared to yesterday approximately 60% of the volume produced approximately 60% of the spread so ease of movement is unchanged. Although we discount the opening we can see that price initially rose to match yesterdays close of 058 which we can now say is at least temporary resistance. The price then fell before finding support at our previous resistance line of 050.
Today could be a high volume reasonable spread test, in which case for the test to be classed as successful we would like to see a low volume upbar showing good ease of movement indicating that supply (resistance) had been removed.
Alternately we may have entered a new sideways trading range governed by our new support line of 050 and resistance line 058.
Lastly we could see a breakdown in the price below 050.
