AP is on its way to fully correcting the run-up it saw mid-September after 2 straight days of downturn this week. It broke the initial support at 30.00 and is on its way to challenging the next one at 28.00. All eyes are on this level for this is the crucial point for AP. If it rebounds after hitting 28.00, that may prompt consolidation. However, if the support fails to hold, there may be a larger correction that could see AP going back to 26.00–close to its 260-d moving average. Indicators are showing slightly bearish tones, with RSI pointed downward in the selling region. DMIs are hinting at a possible bearish convergence. In the mid-term, however, it looks like AP is forming a golden cross–typically an indication of an uptrend in the coming months. The looming drop may be a good time to position, if the downturn is realized, and if volatility isn’t too high.
Buy when support holds.
Support: 28.00 / 26.00