We looked at ACB a little while ago and noted that after a sharp rise, it was trying to find support at the breakaway gap from the 6th of November. It has since consolidated within the bounds of that gap which could now be support and resistance as we go forward.
We have been waiting for momentum to show its hand as the GoNoGo Oscillator was riding the zero line. This has caused the GoNoGo Squeeze to climb to its extremes.
We know that after an extended period of low volatility price can move quickly and so we will watch the oscillator as it tries to break out of the Squeeze to the upside. If this continues we would expect price to move higher.
By
Alex Cole
