The counter is experiencing a temporary rebound for which resistance appears at $5.25. Since volume has dwindled and showed no signs of picking up during the rebound, the corrective phase is unlikely to be over.
The resistance level of $5.25 coincides with the confluence of the 50- and 200-day moving averages. The lack of a positive divergence between quarterly momentum and price, and the very low level of ADX suggest that the counter has not bottomed and is likely to continue to drift sideways and lower. Support has been established at $5, and this level may hold for the next couple of months.
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