Following the strong rally, from $0.5 up to $13, Shift corrected down very sharply and lost 87% to USD in a matter of 5 weeks. Currently, the correctional move down was stopped by the 88.6% Fibonacci retracement level, while price failed to close below it. Additionally, SHIFT/USD testes the major support at $1.6, which has been previously acting as a resistance and support, back in the beginning of December 2017.
The support area between $1.6 and $2.0 looks solid and could result either in strong retracement upwards or a trend reversal. There are 3 resistance levels to watch:
- 61.8% Fibs ($5.3)
- 50.0% Fibs ($6.8)
- 38.2% Fibs ($8.3)
Break and close above the final resistance should confirm the long-term uptrend, although it if any of them will be rejected, consolidation period could take place. On a downside, only break and close below the $1 psychological support could invalidate bullish outlook.