- We are currently at a structure level that has seen price reaction that has caused price to reverse for long periods of time and has ranged between this
resistance level and support level at the bottom of the potential Head and Shoulders pattern. These structure levels also have a very high confluence with
the Fibonacci levels as well
- Looking deeper into the Head and Shoulders pattern
- the left shoulder we see after making a peak, it pulled back down to the 382 fib with structure confluence
- the head after making its peak pushed back down, past the 382, to the 50% retracement level before moving back up
- finally, the right shoulder is now starting to show weakness on multiple TF's at its current level and based on the neckline trend line, it is pointing directly
to the 618 Fibonacci level.
- Looking at the RSI for extra confirmation
- we can see the confluence between price and the RSI where price has reacted and reversed with the trend line where price currently is trading and
looking for a reversal
- From the left shoulder to the head and also now the right shoulder, we can see a massive divergence playing out to the downside aiming for an oversold
position exactly where price action is pointing to with the neckline of the head and shoulders and the 618 fib level
resistance level and support level at the bottom of the potential Head and Shoulders pattern. These structure levels also have a very high confluence with
the Fibonacci levels as well
- Looking deeper into the Head and Shoulders pattern
- the left shoulder we see after making a peak, it pulled back down to the 382 fib with structure confluence
- the head after making its peak pushed back down, past the 382, to the 50% retracement level before moving back up
- finally, the right shoulder is now starting to show weakness on multiple TF's at its current level and based on the neckline trend line, it is pointing directly
to the 618 Fibonacci level.
- Looking at the RSI for extra confirmation
- we can see the confluence between price and the RSI where price has reacted and reversed with the trend line where price currently is trading and
looking for a reversal
- From the left shoulder to the head and also now the right shoulder, we can see a massive divergence playing out to the downside aiming for an oversold
position exactly where price action is pointing to with the neckline of the head and shoulders and the 618 fib level