A couple of weeks ago, we saw resistance for Fred's $FRED at $3.50, as expected. Fred's (FRED) Retreats from Key Resistance at $3.50 FRED Daily Chart (click to enlarge) Choppy Rally:- The daily chart shows us that the rally since September was a choppy one. - This is NOT a good sign for the bullish outlook, especially after price failed to clear above the key support/resistance pivot at $3.50. - Essentially, this shows us that the prevailing downtrend is still in control despite the multi-month rebound. The market may have turned sideways, but is not bullish yet, and is vulnerable to a bearish continuation scenario.- A hold above $3.00 and a break above $3.60 would be a good sign for a price bottom.- However, I think most likely price will fall towards the $2.35-$2.50 area. Key Support:- In order for the bullish outlook to remain in play price should hold above the $2.35 area. This area represents the middle of the 2018 range since February. Holding above the bottom half of this range would suggest bulls are forming a price bottom.- Furthermore, we can see that the 200- and 100-day simple moving averages will be around $2.35. A bounce off of these MAs would be a "slingshot" signal. - Also note that the RSI would probably hold above 40 if price can hold above $2.35. This RSI dynamic would reflect maintenance of the prevailing bullish momentum (from Sep. to Nov). - If price indeed holds above $2.35 with the RSI above 40, and comes back to test the $3.55 resistance area, we can have more confidence that price will break higher.- A break below $2.30 on the other hand, would open up the $1.30-$1.50 area again. This would be within the context of a bearish-neutral market, which means there could be more downside risk below $1.30.