just a quick chart reading here - as we see from the last few bars, the market seems to be looking for a reason to slow down and consolidate - back to the 100SMA (dark blue line on the price chart)
we have seen this scenario before - in the previous reading (linked below), the market respected both the channel and the 100SMA and reversed from there - after we had to take some pain.
the red rectangle represents possible reversal zone and would be around wk3/wk4 December - if not earlier - and somewhere between 15,500 to 15,700 - we see that it is a strong confluence area, potential support level meets with 100SMA and the lower border of the channel. Many traders will be watching that zone for a reaction
lower indicators already showing weakness coming in - they support a scenario of a wave down.
let's see if this will be the scenario to unfold, or are we in for other surprises. <this is not a prediction - just thoughts on the chart and the price action - it can be totally inaccurate - please do proper analysis before making trading decisions>
The bar on 22 Nov '21 pops out as an upthrust / inverted hammer, alongside the largest transfer of volume on this chart so far. 16500 appears to be a confirmed resistance zone, as the bar on 5 Nov '21 first tested. The sideways movement reads as distribution, after a long mark up phase. Retesting the ceiling is not out of the question, as 16000 might be a temporary support zone - before falling to the suggested possible reversal zone. Enjoy following your work! Thanks.
16500 appears to be a confirmed resistance zone, as the bar on 5 Nov '21 first tested. The sideways movement reads as distribution, after a long mark up phase. Retesting the ceiling is not out of the question, as 16000 might be a temporary support zone - before falling to the suggested possible reversal zone.
Enjoy following your work! Thanks.