→ The recent downtrend has officially ended.
→ Since there is a higher low formed and a clear resistance-turned-support at level B, we can project a 100% symmetry of the prior swing from A to B and project it from C.
→ The level of C happens to be the 0.618 Fibonacci retracement from A to B.
→ The level of D can be seen as the short-term goal, and it also happens to be the 1.618 Fibonacci extension from A to B.
On the weekly chart, you may notice there’s a big downtrend channel. And the current price is just right under the downtrend pressure. However, the price didn’t fulfill the lower boundary of the downtrend channel this time and has challenged the pressure for the fourth time. Considering all the Fibonacci level coincidences mentioned above, it’s anticipated that the breakout of this downtrend channel will unfold.
What if the price goes below the level of B?
→ Since the level of B has already been retested and held as a support level, it shouldn’t be broken. Otherwise, the bullish rhyme will also be gone. We should wait for another clear signal to enter/re-enter a trade.
**Not Financial Advice**
The information contained in this article is not intended as, and should not be understood as financial advice. You should take independent financial advice from a professional who is aware of the facts and circumstances of your individual situation.
Comment:
The 0.5 Fibonacci retracement from C to D is tested and held as a support level, because of the opening gap up. It's good to see for a healthy bullish run.