Notice that the battle line is now 2.30, which previously acted as resistance, became support during the recent break-out above, and is now being tested as resistance.
Today's action just tested a couple pennies above, and then closed below. So 2.30 remains resistance. As it has morphed once before recently, it remains in play as an important level.
What actually occurs next is always decided by the sum of those who buy and sell, thus unknowable how this will resolve. The lines do speak to peoples' memories and prior actions, and are thus often good areas to place bets... or watch. Partly this is just the numbers themselves, and partly the popularity of charting.
On balance, the SNGX chart remains bullish as it retraced less than 100% of the last rally leg, found support, and began a move back up. The question is whether next we see a third rally wave, or a sideways correctionary pattern. If it's to be a third rally wave, then we can expect to see 2.95 tested.
For the future, you bets your money and you takes your chances.
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