Long Term Update: Weekly View at MtGox

This is a weekly view since october 2011. It is visible the November low at 1.94$ and the recent top at 7.2$, in the second pane of the chart there is the net volume and it’s clearly visible how it moved from a negative situation to a flat one, after the drop from 7.2$ to 3.8$ the picture now looks mixed.

The weekly ALMA moving average has now a downward slope, but less intense.I think that the underlying long term is still intact, despite three months of high selling pressure the price isn’t  dropped too much. It is very important  to see buyers coming back in the form of a strong positive net volume on a monthly basis (now still negative since january top) otherwise i dont think the 3.8$ will hold and considering that the april-may period has been very volatile last year and we could face rising volatility in the upcoming months there’s good chance that the congestion area from 4$ to 5$ will not last much.