EGO is moving sideways the last three months thru a triangle. The 200 MA is flat lining serving as important support and resistance. Price and the MA's are all squeezing into the triangle verifying this sideways action. Price will make a major decision breaking thru either the top rail or bottom rail in the days ahead. The bears are at an advantage since the red rising wedge, overbot conditions and negative divergence spanked price down in early September marking a significant top. The money flow move over the last couple months is also negative; the red circle will try to pull price lower. In addition, in lieu of the sideways triangle shown, picture a descending triangle, leaving the top rail in place but instead using a horizontal line across 16.5 as a baseline. Descending triangles are bearish patterns and a loss of the 16.5 level will result in serious selling.
Projection is for price to drop out the bottom of the triangle, and fail the 16.5 level and ultimately target 11-12 in the weeks and months ahead. If price exits the top side moving towards 19-20, negative divergence should form, thus, remain cautious if bullish since the move out the top may be a fake-out move should it occur.
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