The market hit downtrend line from where it got rejected and moved below the bottom level of channel.
Downward movement was also supported by the bearish divergence which was confirmed by RSI.
Note that the daily momentum is still favoring bears and likely to push price lower. Now it's important to work on your game plan and watch for ideal reversal zones.
The chart is showing strong support level at 140 level which is near to 0.5 fib level and support zone. The second ideal reversal zone can be found close to 0.382 fib level which was previously known as a resistance level and turned in to support and supported by MA50.
However if not any reversal signals occurs at these levels, then it's likely retrace to 0.236 fib level which is close to demand zone.
In the bigger picture this is looking like cup and handle formation that is considered as a bullish pattern. It's building a handle right now and if it breaks below support zone, then this pattern is going to be invalid. Breaking above of downtrend line (yellow) and $156 level would indicate that it wants to push higher and confirms c&h pattern.
Things to Remember:
- Stop-loss orders are strongly recommended.
- Beware of buying tops or FOMOS, you might end up losing or waiting long periods of time before getting anything back.
- Do your homework before investing.
DISCLAIMER:
Please be aware I am providing this trading information for your benefit and insight to my trading strategies. You are responsible for your trading and investing decisions. It is highly recommended to do your own research before investing anything.
Yarr
Downward movement was also supported by the bearish divergence which was confirmed by RSI.
Note that the daily momentum is still favoring bears and likely to push price lower. Now it's important to work on your game plan and watch for ideal reversal zones.
The chart is showing strong support level at 140 level which is near to 0.5 fib level and support zone. The second ideal reversal zone can be found close to 0.382 fib level which was previously known as a resistance level and turned in to support and supported by MA50.
However if not any reversal signals occurs at these levels, then it's likely retrace to 0.236 fib level which is close to demand zone.
In the bigger picture this is looking like cup and handle formation that is considered as a bullish pattern. It's building a handle right now and if it breaks below support zone, then this pattern is going to be invalid. Breaking above of downtrend line (yellow) and $156 level would indicate that it wants to push higher and confirms c&h pattern.
Things to Remember:
- Stop-loss orders are strongly recommended.
- Beware of buying tops or FOMOS, you might end up losing or waiting long periods of time before getting anything back.
- Do your homework before investing.
DISCLAIMER:
Please be aware I am providing this trading information for your benefit and insight to my trading strategies. You are responsible for your trading and investing decisions. It is highly recommended to do your own research before investing anything.
Yarr
