It is a "potential" reversal point. So keep an eye on it. the monthly L3 with a stop loss maybe halfway between the L3 and L4. daily is oversold. Fear is high. I am not sure how many shorts are stacked but the market has gotten pretty bearish. So keep an eye on this level
Also I notice the cpr (purple lines) are quite wide which indicates ranging behavior. It has been ranging so that could maybe be ruled out. Also we have not officially tested the H3 level and generally the first level 3 visited tends to be reversal. However we did visit the central pivot area so that is possible to be counted as a visit as it is resistance.
So it is not the strongest argument for a long. However it is possible to see it happen from that L3 level or around it
Also I notice the cpr (purple lines) are quite wide which indicates ranging behavior. It has been ranging so that could maybe be ruled out. Also we have not officially tested the H3 level and generally the first level 3 visited tends to be reversal. However we did visit the central pivot area so that is possible to be counted as a visit as it is resistance.
So it is not the strongest argument for a long. However it is possible to see it happen from that L3 level or around it