A strong confluence resistance zone has been hit at around 7100, which is a good candidate for terminating the upward countertrend, marking it as the high for the next few weeks. Previous support targets of 5000 and 3500 are still in play for establishing a long position.
There is a possibility that the next confluence resistance zone around 7500 will override the one at 7100. Closing above 7500 on the daily is a strong bullish signal which rejects this scenario (blue line on the chart).
This study uses longer range confluence zones compared to the previous scenario.
There is a possibility that the next confluence resistance zone around 7500 will override the one at 7100. Closing above 7500 on the daily is a strong bullish signal which rejects this scenario (blue line on the chart).
This study uses longer range confluence zones compared to the previous scenario.
Comment:
3500 price hit, albeit later than expected. We never went over 7500, so this scenario was valid this whole time.
