Nexium Rejecting Support

Back in April Nexium found the bottom at $0.092, after which price went up and broke above the descending channel, reaching $0.23 high. But then, in May, NXC/USD started to correct down and this time found the support at 88.6% Fibonacci retracement level, that is $0.1 psychological price.

Given the facts that the support has been rejected and the descending channel was broken, the price is likely to move high, but only if Nexium stays above the $0.1. First resistance is at $0.31, which corresponds to the previous support and then resistance. The second target is at $0.55, that corresponds to 61.8% Fibonacci retracement level.

As has been mentioned previously, $0.1 plays the key role. Daily break and close below this level should invalidate bullish outlook and extend the consolidation period, or even send price the new lower low.

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