I have been looking at ARA. The downtrend is persistent and I have yet to initiate a long position here. Today, ARA's share price broke its previous low of $1.29, gapping down and touching an intra day low of $1.26 before closing at $1.27. The DIs are negatively placed but the ADX shows that the downtrend is not a strong one. In fact, volume seems to be reducing as price weakens. If this continues to be the case, the MACD could indeed form a higher low as price forms a lower low. A positive divergence in the works? Perhaps. If we would like to do a bit of pre-empting, what price would we buy at? $1.22 is a price that market participants would remember as that was the low of 21 Oct 2010 and the counter went much higher from there in the following months. Next would ......