20% Correction on the Weekly Resistance zone, Already happened
The Weekly chart is an amazing timeframe to look for Critical levels. What are Critical levels? Situations in which the price made clear reversal movements. Generally, we will tend to see there Relevant corrections or new bearish trends.
Let's see what we can see on this chart:
a) We have a weekly resistance zone between 50 - 52. That level has been tested several times in the past; to be precise, we have 4 scenarios in which the price reached the weekly resistance zone, and then we had a 20% bearish correction towards the Support zone
b) The logic here is: IF that happened in the past, we should be ready to see a similar situation after the price reaches that level
c) The target of the bearish movement would be 42
d) We think the price still have Bullish potential to reach the 50 - 52 Resistance zone. Only there we should start thinking in terms of Bearish movements coming
Let's see what we can see on this chart:
a) We have a weekly resistance zone between 50 - 52. That level has been tested several times in the past; to be precise, we have 4 scenarios in which the price reached the weekly resistance zone, and then we had a 20% bearish correction towards the Support zone
b) The logic here is: IF that happened in the past, we should be ready to see a similar situation after the price reaches that level
c) The target of the bearish movement would be 42
d) We think the price still have Bullish potential to reach the 50 - 52 Resistance zone. Only there we should start thinking in terms of Bearish movements coming