With over 300pips in our favour since my last publication on this channel (see link below for reference purposes), we might be on the verge of a very LONG rally in the coming week(s) as the price seems to have established a Support @ NZ$1.88500/1.90000 area - a level which has been respected since the beginning of the year since the Breakout on the 15th of January 2021.
Tendency: Uptrend ( )
Structure: Breakout | | Reversal pattern ( DB )
Observation: i. The Impulse leg that began in March 2020 appeared to have found a bottom at around NZ$1.85000 to make a structure - a strong reversal pattern that incites tendencies.
ii. My Key level identified @ NZ$1.90500 as been an area that dictated the momentum of price action since Nov 2020.
iii. This Key level that has been a Supplication zone since Nov 2020 appears to have become a strong since Breakout (Jan 2021) followed by sharp rejection.
iv. A quick look at my weekly chart supports completion of a reversal pattern as last week trading session culminates with a beautiful "hammer candle"!
v. Last week Friday trading session experienced an candle spring out of to emphasize the strong presence of Buyers at this juncture in the market.
vi. This been said, I shall be looking for buying opportunity anywhere above my Key level @ NZ$1.90500 in the coming week(s) to take advantage of this rally.
Trading plan: BUY confirmation with a minimum potential profit of 800 pips.
Potential Duration: 20 to 40 days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
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