The recent correction seems to have dived a bit too close to short-term support. This raises the question, were institutions building liquidity to continue bullish momentum, or are we seeing signs of diminishing demand?
The answer will be determined by the ability of the price to break out of the trading range with enough volume to sustain a clear direction & momentum.
It is worth noting that volume levels are currently dropping indicating Effort < Result, whilst the price is still floating above short-term support levels (As seen by the double bottom). This doesn't provide a lot of confidence for buyers.
However, since there are no confluences (from my view) of sell pressure, it looks like we'll be heading sideways for some time unless we can receive a significant increase in buyers to continue the uptrend.
The answer will be determined by the ability of the price to break out of the trading range with enough volume to sustain a clear direction & momentum.
It is worth noting that volume levels are currently dropping indicating Effort < Result, whilst the price is still floating above short-term support levels (As seen by the double bottom). This doesn't provide a lot of confidence for buyers.
However, since there are no confluences (from my view) of sell pressure, it looks like we'll be heading sideways for some time unless we can receive a significant increase in buyers to continue the uptrend.
From an order flow perspective, this looks like a second sign of weakness. We've also broken out of the trading range but I will be looking for more confluences before I consider any trades.