The bulls should sleep with one eye open here! Yesterday’s candle is a mix of Marubozu with Bullish engulf, which is awesome, but let’s not forget that the next resistance is near. The U$ 58.60 zone served as a resistance in the past, and as a target of a very successful Head & Shoulders pattern. So be aware of that!
The price found support at U$ 50.20, which was a previous top (black line), and there’s another support at U$ 48.40 zone, but it didn’t go so far. Now it seems the bullish trend will resume, but that Marubozu / Engulf shouldn’t be cancelled! If that pattern is cancelled, then the price will seek further supports.
Lets’ look the weekly chart for more perspective:
It did a V bottom, and successfully reached its target (blue line), after hit a support (pink line). Last week an Elephant Red Bar appeared in the chart, near a resistance zone. And that’s the danger here, because if that Marubozu / Engulf get cancelled in the daily chart, it means that this Elephant Bar will be triggered in the weekly chart. In that case, the price could sink down to the pink line (previous support).
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