3 weeks ago, the price has dipped back into the weekly flag, causing a massive upper wick on the weekly chart, indicating a false breakout of the weekly bull pennant which also indicates that the price is not ready for 2000 back then. 2 weeks ago, the price went down towards the middle of the weekly flag and got rejected magnificently, forming a bullish pinbar on the H4 chart which in return caused the price to go back up towards the 38.2 - 50 H4 fibo retracement levels.
To me, the massive sell off 3 weeks ago looks to be the start of an impulse wave and the current price is just a healthy retracement before it dips lower for a wave 3 which potentially be around 1765 and form a double bottom there before heading back up for the wave 4.
For bears, key levels to note will be TP1: 1822, TP2: 1803 and TP3: 1765. They can potentially look to set their tp around those levels. Bears will need to take note of the weekly flag which is indicated on my chart, if the price breaks back up of 1875, bulls will take over. Refer to the H4 uptrend that I have indicated for possible bull TPs. TP1 will be 1892, TP2 1905.
For now, I'm leaning towards the bearish side because of the daily bear pennant that's forming. Breaking of the flag that we are currently consolidating in will determine the direction of the market.
To me, the massive sell off 3 weeks ago looks to be the start of an impulse wave and the current price is just a healthy retracement before it dips lower for a wave 3 which potentially be around 1765 and form a double bottom there before heading back up for the wave 4.
For bears, key levels to note will be TP1: 1822, TP2: 1803 and TP3: 1765. They can potentially look to set their tp around those levels. Bears will need to take note of the weekly flag which is indicated on my chart, if the price breaks back up of 1875, bulls will take over. Refer to the H4 uptrend that I have indicated for possible bull TPs. TP1 will be 1892, TP2 1905.
For now, I'm leaning towards the bearish side because of the daily bear pennant that's forming. Breaking of the flag that we are currently consolidating in will determine the direction of the market.