The final test. Break this and we have a 'V' recovery.
This major resistance has held 5 times in the last 2 years and broken once support once before it broke down upon the outbreak of Covid.
This line also coincides with the 78.6 retracement which according to Elliot wave theory means that if we break this line we are going back to all-time high's.
Who knows what this market can do with all of the liquidity thrown into it, maybe it will return to all-time high's, but it makes little sense to me.
Any sign of weakness here and a failure to close above and there is a good chance this could be the turning point to the downside.
I think this potentially offers an excellent risk-reward ratio for a short.
This line also coincides with the 78.6 retracement which according to Elliot wave theory means that if we break this line we are going back to all-time high's.
Who knows what this market can do with all of the liquidity thrown into it, maybe it will return to all-time high's, but it makes little sense to me.
Any sign of weakness here and a failure to close above and there is a good chance this could be the turning point to the downside.
I think this potentially offers an excellent risk-reward ratio for a short.