When we zoom into the action we can see several healthy retracements that retest the last resistance now providing support.
Most of the time when price moves up fast, it needs to cool down a bit before it can rise further. We call this cooldown a retracement of the swing high and this is healthy in any trend, down or up.
Comparing the swing highs here, you can see the last swing is extrapolated and the fibonacci levels for the last massive swing high show the fibs are much higher then the highs of the last swings.
This should tell you there is a very high chance the price can retrace a lot. For price to test previous resistance as support, it needs to hit the 0.786 fib which is exactly what happened.
Right now, I expect REP to range a bit in the big price range the last swing high has created.
I will try to keep following REP explaining my view on it's market structure.
If you have any questions or like my posts please let me know :)
Most of the time when price moves up fast, it needs to cool down a bit before it can rise further. We call this cooldown a retracement of the swing high and this is healthy in any trend, down or up.
Comparing the swing highs here, you can see the last swing is extrapolated and the fibonacci levels for the last massive swing high show the fibs are much higher then the highs of the last swings.
This should tell you there is a very high chance the price can retrace a lot. For price to test previous resistance as support, it needs to hit the 0.786 fib which is exactly what happened.
Right now, I expect REP to range a bit in the big price range the last swing high has created.
I will try to keep following REP explaining my view on it's market structure.
If you have any questions or like my posts please let me know :)
