By connecting these 2 major lows, we have a reliable to work with. By projecting a parallel line through the top made at 4th of June, we had an upward channel (Light blue channel)
On 21st of August, price broke out of the channel in a suspicious move that soon reversed. The reversal started right on the duplicated channel (Orange channel). This channel was drawn by projecting the width of the first channel upward from the point it was broken.
As the bulls lost power, price started retracing back to the lower end of the first channel and here we are. Bulls have to defend this area vehemently or they will lose their 6 month uptrend structure.
Based on correlation analysis, I expect that this channel will soon be broken to the downside.
Ali Sharif Azadeh, CFTe