ETC is going to retrace back after being rejected from weekly level on 1st test at 7252.
The candles followed three levels. ( Middle Trend Line, Bottom Trend Line and Monthly Horizontal Level).
The middle trend line acted as resistance throughout the downward trend, where as bottom trend line as well as at times monthly level acted as a support.
We can call bottom trend line and monthly level as DUAL SUPPORT for ETC.
Once Monthly support level broken on 07 may 2020, it became resistance, as on breaking monthly level candle has to find a support, which in this case was weekly support at 6383.
Current Condition
From 27 June 2020 to 05 July 2020, ETC was in accumulation zone, mean bullish move ahead was on cards, and it happened. During that bullish move, it broke the weekly level at 6383, and it had to find a new resistance which was the next weekly level at 7252.
ETC has found a new zone of support and resistance between two weekly levels, 7252 (Weekly Resistance) and (6383 Weekly support).
Weekly resistance and weekly support has been tested both for the first time, and right now we may see some retracement back to 7252 level.
If you want to enter the trade on daily candles, during the next week 10 to 12 percent rise is expected. You can trade long but must excite before 7252, as it can retrace back. making HEAD AND SHOULDERS PATTERN.
Lookout for Head and Shoulders pattern for now in coming 10 days.
Trade according to the pattern.
The candles followed three levels. ( Middle Trend Line, Bottom Trend Line and Monthly Horizontal Level).
The middle trend line acted as resistance throughout the downward trend, where as bottom trend line as well as at times monthly level acted as a support.
We can call bottom trend line and monthly level as DUAL SUPPORT for ETC.
Once Monthly support level broken on 07 may 2020, it became resistance, as on breaking monthly level candle has to find a support, which in this case was weekly support at 6383.
Current Condition
From 27 June 2020 to 05 July 2020, ETC was in accumulation zone, mean bullish move ahead was on cards, and it happened. During that bullish move, it broke the weekly level at 6383, and it had to find a new resistance which was the next weekly level at 7252.
ETC has found a new zone of support and resistance between two weekly levels, 7252 (Weekly Resistance) and (6383 Weekly support).
Weekly resistance and weekly support has been tested both for the first time, and right now we may see some retracement back to 7252 level.
If you want to enter the trade on daily candles, during the next week 10 to 12 percent rise is expected. You can trade long but must excite before 7252, as it can retrace back. making HEAD AND SHOULDERS PATTERN.
Lookout for Head and Shoulders pattern for now in coming 10 days.
Trade according to the pattern.