From first look at this chart it can be overwhelming... But let us explain.
We look to be in a descending channel and respecting it well. It could be that we bounce from the current level back up to the 66 level. However, if we reject the channel resistance, we could make our way back to the 12 to 16 level where the 2021 bull run started. That would make for a great retest before moving higher.
Now that we have all the possible moves marked out, we just need to wait for one of the scenarios to play out and act accordingly.
In the meantime we can watch for a break of the descending trendline and target the channel resistance and then see how we react there before we either enter shorts back to the impulse generation level OR we hold our longs to the 66 level.
Goodluck!
We look to be in a descending channel and respecting it well. It could be that we bounce from the current level back up to the 66 level. However, if we reject the channel resistance, we could make our way back to the 12 to 16 level where the 2021 bull run started. That would make for a great retest before moving higher.
Now that we have all the possible moves marked out, we just need to wait for one of the scenarios to play out and act accordingly.
In the meantime we can watch for a break of the descending trendline and target the channel resistance and then see how we react there before we either enter shorts back to the impulse generation level OR we hold our longs to the 66 level.
Goodluck!