It was a fast and overextended rally in 2016,way higher than what a 'normal technical rally' "should" go in one move,in my view,...and now the short selling down has a good chance to be equally intense,already testing the key 8 dollar target zone, where the 200ma is. I see targets around 7.60 and 7.25 as well,down to 7 dollars. It might seem nice to see PVG hold at 8 dollars so that buying here becomes a good 'dip' to buy, its ok as it is, but those targets lower, are in play too, and I wouldn't be surprised to see 7 dollars before the bottom settles.
PVG started the 2016 rally at 4 dollars, a great bottom zone for a long time. But the technical topping target zone really was closer to 10 dollars and all the rally peaks around 12 were overblown, and waiting to get hammered down IF we didn't see the 10 area hold strong and rally higher into the 13's...that rally was set up and waiting, but the Cartel had plans to slam everything down last week when China was on holiday.So instead of a "wave 5" rally, we got the latest Cartel trick,slamming miners and metals down. and the orchestrated slam down last week has hit the pullback target zone already ....but on the technical chart, that "pullback" zone is 9-8-7 dollars. its the basic Fibonacci retrace zone. so in that regard ,buying here at 8 dollars is ok, but 7 dollars is a better bargain waiting for later in the year. Technically, that 12 dollar topping zone was a good place to take some profits. and now, the next bounce into resistance around 9.50-10.00 has become a technical resistance to consider selling some, in anticipation of buying again at much lower targets.
