Last week the price had reached the supply zone as we had expected in the previous post. A double top pattern has been created with respect to the supply zone and the neck line has been broken but the price did not drop further.
Now the supply zone is being retested and a new neck line has been created. Price may go higher than the previous tops to prepare for a head & shoulder pattern Or may drop down to touch the new neck line.
If it drops down and breaks the new neck line then I expect it to drop to the nearest moving average or swing low. If it continues higher then we should wait to see if another neck line is created or the current neck line stays valid.
DO NOT ENTER THE TRADE WITHOUT PROPER RISK MANAGEMENT YOU ARE RESPONSIBLE FOR YOUR TRADES
Now the supply zone is being retested and a new neck line has been created. Price may go higher than the previous tops to prepare for a head & shoulder pattern Or may drop down to touch the new neck line.
If it drops down and breaks the new neck line then I expect it to drop to the nearest moving average or swing low. If it continues higher then we should wait to see if another neck line is created or the current neck line stays valid.
DO NOT ENTER THE TRADE WITHOUT PROPER RISK MANAGEMENT YOU ARE RESPONSIBLE FOR YOUR TRADES
