POT extended the decline off the 60.42 high to reach 44.50 (26 Sept low) and 44.52 (29 Sept low) near the 3-1/2-year 43.76/42.93 key support zone (28 Jan/7 Feb 2008). The bullish RSI divergence suggests a potential double bottom forming from the 44.50/44.52 lows. Recycled strength above 47.40 (Resistance 1) near the 2-week falling trendline (from 58.36 high) would re-open 50.41(Resistance 2) which, if breached, would confirm the double bottom and extend the rebound towards 54.32 (Resistance 3).
However, a break below 44.50 would risk a 43.76/42.93 retest. That would negate and stop out the trade.
Trading Indication:
Short-term (Intraday): Buy at 45.00 or lower;
Target at 50.41 and higher;
Stop Loss at 44.50 (1.0%)
Long-term: Possibly sell higher
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