Price is sitting right by the 61,8 fib retracement of the swing Feb 6/Feb 20 and
currently a triangular pennant is formed between the two support & resistance
zones (red areas). The support zone below the current low stands at 7000 which
is the 78,6 fib and the Monthly S1. Price shouldn't daily close below the latter (6900)
since it would expose the 5900 low.
A break and close outside the triangle, either way, may push price further in that
direction. To the upside, price will quickly ran into the confirmed bearish trendline
(red line). A close above that and we may see further gains.
Overall, price failed to stay inside the Cloud on daily timeframe and the trend has
shifted bearish yet again, thus adding downside pressure going forward. Only a
close back inside the Cloud will relieve the bearish pressure somewhat. As long as
price trades below the trendline on the hourly, we expect further losses . Even with
a break above the trendline, price really needs to take out the top at 9870, to create
the first part of a reversal swing. Also, there is a slight bullish divergence between
the March 9 & March 15 lows.
currently a triangular pennant is formed between the two support & resistance
zones (red areas). The support zone below the current low stands at 7000 which
is the 78,6 fib and the Monthly S1. Price shouldn't daily close below the latter (6900)
since it would expose the 5900 low.
A break and close outside the triangle, either way, may push price further in that
direction. To the upside, price will quickly ran into the confirmed bearish trendline
(red line). A close above that and we may see further gains.
Overall, price failed to stay inside the Cloud on daily timeframe and the trend has
shifted bearish yet again, thus adding downside pressure going forward. Only a
close back inside the Cloud will relieve the bearish pressure somewhat. As long as
price trades below the trendline on the hourly, we expect further losses . Even with
a break above the trendline, price really needs to take out the top at 9870, to create
the first part of a reversal swing. Also, there is a slight bullish divergence between
the March 9 & March 15 lows.
