Pivotal zone at $590 shows support forming bullish pennant

For me, the most dominant movement affecting priced action for the past two months was the non-stop rally from 440-680 that went from may into june. We've had pullbacks, retracements, etc - but overall that movement has managed to consolidate itself above the 0.382 fib, which is inherently bullish. The first deep selloff reached 0.618, but further tests of support bounced of the crucial 50% and have now fallen onto the confluence of the daily ichimoku cloud, 200MA, and this 0.382 fib. If we rise from here, that same 200MA should provide support with the cloud and the lower pennant floor all the way to a bullish breakout.

Just a few days ago, we were in a very tightly squeezed sideways slide that was causing many to draw comparisons with the squeeze in mid-may (with most indicators dead-neutral). We broke down from that level, which has some calling for a deeper bear slide here. But I noticed, when checking my preferred indicators against that pre-440-rally period that *now*, we're actually in an identical position across RSI, VZO, Willy, and RMI to the last slump on May 6th before the 440 rally.

This $590 zone is being well-defended, and if it can hold, it will confirm this pennant formation, as well as set us up for a bullish exit in maybe two weeks or so. Clearly any solid move below $590 at this point will invalidate this analysis, and send is into the cloud for much more bearish forecast to $560 and beyond