So, NEM has been rejected and made a nice retrace already.
What we need to do is monitor closely now and do the following.
We need to look for is 2 things:
- Arrival at a significant level of support.
- Signs of reversal at this support like; bullish divergence , engulfing candles, large wicks, big volume on bounce, falling wedge , inverted head and shoulder, etc.
The 2 supports to look out for:
1. USD 59-60, the one we are currently at. Represents the 0.618 fib of the most recent impulse (black fibs) and has horizontal support.
2. USD 52-53.50, representing the 0.5 fib on the larger upward impulse since the corona crash in march (blue fibs). This area has very strong horizontal support as well, hence i'm marking the 0.5 fib rather than the 0.618 fib.
What we need to do is monitor closely now and do the following.
We need to look for is 2 things:
- Arrival at a significant level of support.
- Signs of reversal at this support like; bullish divergence , engulfing candles, large wicks, big volume on bounce, falling wedge , inverted head and shoulder, etc.
The 2 supports to look out for:
1. USD 59-60, the one we are currently at. Represents the 0.618 fib of the most recent impulse (black fibs) and has horizontal support.
2. USD 52-53.50, representing the 0.5 fib on the larger upward impulse since the corona crash in march (blue fibs). This area has very strong horizontal support as well, hence i'm marking the 0.5 fib rather than the 0.618 fib.