After that dump, then dead cat bounce (price retraced back to the 50%) the new resistance level has been created. The price will most likely steadily go up trend until it meets that resistance.
2 possibilities:
- If it manages to break through the zone of confluence then expect an attempt for the support to be built at that price range
- If it gets rejected at the zone, then simple retracement back to the lower trend line
2 possibilities:
- If it manages to break through the zone of confluence then expect an attempt for the support to be built at that price range
- If it gets rejected at the zone, then simple retracement back to the lower trend line
Trade closed: target reached:
It broke past the zone but failed to build support at the resistance. The usual sell off presumed and now fallen out of the trend