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On December 1 we mentioned that BELM was approaching the combined resistance of the top of the gap ($9.00) and the 200 DMA. As you can see from the chart below, these areas did indeed act as strong resistance and BELM headed toward the October lows just as we expected. This chart has become interesting again since the RSI has failed to make a new low, while the price of BELM shares has continued to decline. This divergence could be used by the bulls as an indication that the downward pressure may be coming to an end. If the RSI can continue to head higher we'd expect to see BELM test the resistance of the 200 DMA again in the coming weeks.

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