Actually, we can make even a wider rejection box because currently, the price is on the pretty strong at $5,180. This area was recently a strong and now it has started to work as resistance but still, I think the $5,300 plays a significant role in the price structure. There meet several price action criteria which all should work as resistance levels and it would be difficult to crack it.
$5,250-$5,300 rejection criteria:
1. Fibonacci retracement golden ratio 62%
2. Small wave Fibonacci extension
3. Equal waves end in this box.
4. Bigger channel (blue ) middle starts to work as a resistance. As you see, it has been before a and also a .
5. The black channel projection is in this area and it should work as a resistance.
6. (light green lines) upper trendline is inside this blue box and it should start to work also as a resistance.
7. We have a short-term lower low which indicates that the price may make a correction downwards.
A lot of signs and a lot of indications that the price may take a stronger bounce downwards from the blue box or even before it because this $5,180 is a pretty strong resistance. Still, the perfect area where You should look for selling opportunities is the blue area and it would be perfect when the rejection ends with a pattern on the 4H+ chart.
Just in case a confirmation, yes, it is a strong but it could still get cracked. So, a perfect breakout confirmation would be a 4H candle close above the blue area, it depends on the timing but let's say: a 4H candle close around $5,350 and the breakout should be confirmed!
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*This information is not a recommendation to buy or sell, it is used for educational purposes only!