) has had a terrific run over the past twelve months, but as you can see from the chart below, the price has recently been consolidating
between the barriers of a horizontal channel
, which could be the signal an exhausted uptrend. Sideways momentum
is often used by technical traders to suggest that the bulls are losing their conviction. In this case, it could be used to suggest that we could see a move down toward the lower support of $50 like we did earlier in the month. The decline in volume during the recent move toward the resistance may be a concern for many traders because this could suggest that the market is unsure of whether or not the price will be able to break out of the channel and continue its trend higher. We'll keep a close eye on the barriers of this channel because a break out in either direction will likely be followed by a surge in short-term momentum.