Let us study the price action for 4 hour chart. Since the prices slipped to the level of 1784 on November, 23 the price continued to range between 1784 to 1800 level. It tried to breakout once at 3rd wave but again settled at previous level. This continued until 5 waves and then there was a very high selling pressue when it tried to test the 1808 level for second time and the volume in this 4 hour candle is the highest in two month period. In sixth wave the price dropped to see new level of 1764 on December, 2. However prices came back to 1785 level and presently we can see the formation of third peak. In general the peak occur in odd numbers. So I expect the trend to break in either 4th or 6th peak. This means for now we can expect to go upto 1790 and then go down to test the 1778 level before it goes back to form next peak.
One important thing volume suggest is the High Volume candle at wave 5 is still controlling the prices and the levels given by this candle are 1796 and 1775. So we can see a trend reversal only when 4 hour candles close above or below these levels and pass the test.
One important thing volume suggest is the High Volume candle at wave 5 is still controlling the prices and the levels given by this candle are 1796 and 1775. So we can see a trend reversal only when 4 hour candles close above or below these levels and pass the test.
