4-Hour Analysis:
Big Picture: Multiple hurdles between 45 and 47 limited the upside potential. Sol is reaching support levels once more. Furthermore, if it maintains the prior support level of 37.40 for a little longer, it may lead to a tiring event for bears. Consolidation will benefit bulls in the future as price builds momentum.
On the Upside the initial resistance is seen at 43 followed by 4-hour EMA-100, which is now around 45.40. This EMA has not been tested in more than a month. As a result, first rejection is likely in this case. To launch a significant move to the upside, bulls must keep the pullback short-lived and overcome this level, followed by channel barrier at 46. Successful breakout is likely to pave path towards 58 and towards 70-72 potentially.
On the Downside Sol has good intraday support at 39-37.40. This area is anticipated to provide excellent demand-based support. Sustaining these will be critical in order to keep the corrective cycle prospects intact. A break below this will almost certainly result in a faster decline towards the 32-28 support level.
