SOL-“Weakness Persists”

Big Picture: Once again, the Sol is approaching recent lows. There is still the chance of a double bottom formation or a rapid deviation bounce. Sellers should be aggressive in taking profits at the lows. Short-coverage is expected at support levels.

On the Upside the first point of resistance comes at 41.10. Breaking this level will lead Sol back to the 44 region, followed by the EMA-50. The EMA remains a critical level for Sol to breach. This EMA has been restraining the advances since mid-May. Regaining this level will be a sign of strength. The next resistance is at 47.50, followed by 50.20. Sol must regain these levels in order to gain strength and reach 58.80. This 58.80 level is key for continued bullish movement towards the 70-72 region.

On the Downside the price of Sol is now slightly above the previous low of 37.40. This is a good support level that should fend off some of the selling pressure, but if it is violated, another round of selling is likely, bringing Sol to 34, then 31.50. In this area, partial short-coverings are likely.