To start of, let's first take a look at the two fibonacci retracements on the chart. The area that I would like to expose is the one between the 38% of the smaller fib retracement and the 26% of the bigger one (in the graph it is connected with a curly bracket). Here was the last try from buyers for a reversal, which led into a long red candle. So we can say that shorts have more power here. And in this same price area, the last green candle spiked and then went back down. So this area is a pretty solid resistance for now and the future.
A bit above the area I was talking about we have another resistance zone. We can say that this is a resistance zone for sure, because spikes went in there and then bounced back. And this happened as well in the "far" as in the near past.
A sign of weakness of the short trend, that I'm describing is the last hammer candle (also labelled in the graph). It has a pretty long spike on the downside and then two green candles right after it. So that could mean that buyers might strike again in the near future.
However, a thing that seems very important to me is that, since the downtrend is fresh, there haven't been made any support zones. And nor are there any smaller uptrends in the overall downtrend. And this, to me, seems like a great advantage for the sellers.
And the last thing that is also on the side of shorts, is that there's a triangle formed on the downside, which is a sign of downtrend continuation. But since it is very steep and short I wouldn't take it as the most convincing thing.
So in my opinion, the reins of the market are currently in hands of sellers. I think so, because there is barely one sign of a bullish reversal and sellers also seem to have made pretty strong resistances.
A bit above the area I was talking about we have another resistance zone. We can say that this is a resistance zone for sure, because spikes went in there and then bounced back. And this happened as well in the "far" as in the near past.
A sign of weakness of the short trend, that I'm describing is the last hammer candle (also labelled in the graph). It has a pretty long spike on the downside and then two green candles right after it. So that could mean that buyers might strike again in the near future.
However, a thing that seems very important to me is that, since the downtrend is fresh, there haven't been made any support zones. And nor are there any smaller uptrends in the overall downtrend. And this, to me, seems like a great advantage for the sellers.
And the last thing that is also on the side of shorts, is that there's a triangle formed on the downside, which is a sign of downtrend continuation. But since it is very steep and short I wouldn't take it as the most convincing thing.
So in my opinion, the reins of the market are currently in hands of sellers. I think so, because there is barely one sign of a bullish reversal and sellers also seem to have made pretty strong resistances.