Breakout after descending trendline. Price breaks out after third touch and created equal high before retesting the trendline.
Price is currently at the nearest zone.
Possibility 1: retrace back up to make a LH or new high
Possibility 2: Price will continue down to retouch the trendline before pushing up.
H1 view shows Price is moving down as expected - shown in MOVE A. This move is completed by touching LTF demand area, shown in grey.
An additional confirmation would be when the pullback respects previous structure and completed MOVE B as a lower high. This confirms a down trend move.
H4 shows a new set of supply areas that have been respected along a strong S/R area at 1795/1803
Sitting below this area is a highter timeframe fresh nested demand area. This would need to be tested and would act as the catalyst to push up, thus completing stage 2 correction
The Daily view shows price rejecting HTF supply zone and moved down. According to S/D rules, once supply is touched then the demand area below is touched. This may be a weak demand or fresh demand area depending on set up.
Descending trendline shows price respected two touches on a uptrend and broke on the third; thus touching the nearest supply zone. However...
Monthly supply area is nested with a Weekly supply area
The weekly area has been breached and approaching the monthly supply area
This is also inline with key weekly and monthly fib levels.
There are many valid trendlines on daily but these are weak representations so not applying them into my analysis.
I expect Price to continue up and based on a reaction...
With the last daily candle closing orders within the supply area - also support turned resistance area - todays daily candle would need to close ABOVE the base bottom to encourage further bullish movement
Price has been respecting bullish movements and breaking through each key level.
Price will continue up to the next key level - this is also in line with a descending trendline, 3rd touch, break out will create more bearish momentum