Assuming we continue upwards through the $4,300 zone I have marked two different areas of resistance we could possibly encounter:
1. $4,420 - Price has bounced off of this level as resistance in the past. This zone has also had a lot of price action occur previously.
2. $4,550 - The top of the beginning of the last head and shoulders. This is where price was first rejected after a large rally to the upside.
If price falls in the future; whether from rejecting now from the $4,300 zone or hitting one of the zones I mentioned above and then falling. I have marked what I can see as being two key levels of support:
1. $4,200 - The previous level of resistance. Price has treated this as a strong level of resistance in the past.
2. $4,100 - A strong level of support and resistance that has held up recently.
I can see these zones acting as good buying and selling points for possible shorter swing trades. Of course, at the time of your trade, you will have to take into account current market conditions to decide whether you are going short or long.
1. $4,420 - Price has bounced off of this level as resistance in the past. This zone has also had a lot of price action occur previously.
2. $4,550 - The top of the beginning of the last head and shoulders. This is where price was first rejected after a large rally to the upside.
If price falls in the future; whether from rejecting now from the $4,300 zone or hitting one of the zones I mentioned above and then falling. I have marked what I can see as being two key levels of support:
1. $4,200 - The previous level of resistance. Price has treated this as a strong level of resistance in the past.
2. $4,100 - A strong level of support and resistance that has held up recently.
I can see these zones acting as good buying and selling points for possible shorter swing trades. Of course, at the time of your trade, you will have to take into account current market conditions to decide whether you are going short or long.
Comment:
A snapshot zoomed in on the 1 hour chart with the $4,100, $4,200, and $4,300 levels prior to market open:
