On the above 4-day chart price action has corrected 27% from the peak and 15% following the confirmation of the head and shoulders pattern, an expected measured move. A number of reasons now exist to expect an move up. They include:
1) RSI resistance breakout.
2) Support and resistance. Price action confirms support on past resistance.
3) Regular bullish divergence.
4) RSI crosses up 35. This is significant. Look left. History tells us the following move up from this oversold condition has never been less than 20% and never been more than 700%.
Is it possible price action continues to correct? Sure. Is it probable? No.
Ww
Type: trade Risk: <=6% Timeframe for long: 4-12 days Return: 20% without leverage