On monthly chart,
In price channel between $40 and $83 with a mid-range support/resistance level of $61.50. Brice broke out of channel in 12/2020 just to break back into it on 08/2021. We are now at the mid-rang level of $61.50. Will look into the lower timeframe to see if there is an opportunity to enter at this 61.50 level.
1HR chart
Price is still in downtrend resisting the 200ema. After an over-extension, Price went into and ascending triangle which it broke out of. There is incoming sell-pressure from 61.50 mid-range resistance level and 200ema. If price is to break downtrend and make and up move, price must stay above highs of the ascending triangle.
Analysis
Although price is in a long term uptrend being above 200ema on Monthly chart, it has been somewhat in a channel moving sideways the past 14 years.
The price finds itself in an odd area with a lot of incoming sell pressure. It is overextended and would need to make a move back up to the falling moving averages to strengthen before making a strong down move lower to $40s. It’s too over extended to short, too much sell pressure to buy. This trade has a low probability either way you go. I would wait on the sidelines.
Because of the over-extension and the breakout of triangle in the 1HR chart, If I took this trade I would go long with stop loss below of highs of triangle on 1hr chart. Stoploss: 58.50
In price channel between $40 and $83 with a mid-range support/resistance level of $61.50. Brice broke out of channel in 12/2020 just to break back into it on 08/2021. We are now at the mid-rang level of $61.50. Will look into the lower timeframe to see if there is an opportunity to enter at this 61.50 level.
1HR chart
Price is still in downtrend resisting the 200ema. After an over-extension, Price went into and ascending triangle which it broke out of. There is incoming sell-pressure from 61.50 mid-range resistance level and 200ema. If price is to break downtrend and make and up move, price must stay above highs of the ascending triangle.
Analysis
Although price is in a long term uptrend being above 200ema on Monthly chart, it has been somewhat in a channel moving sideways the past 14 years.
The price finds itself in an odd area with a lot of incoming sell pressure. It is overextended and would need to make a move back up to the falling moving averages to strengthen before making a strong down move lower to $40s. It’s too over extended to short, too much sell pressure to buy. This trade has a low probability either way you go. I would wait on the sidelines.
Because of the over-extension and the breakout of triangle in the 1HR chart, If I took this trade I would go long with stop loss below of highs of triangle on 1hr chart. Stoploss: 58.50