Inverted Cup is a fairly rare but very reliable bearish pattern. It is formed at the end of a long-term bullish trend and usually gives a signal of a market reversal.
The upward trend in prices with a gradual slowdown. In the classical case it should represent a smooth arc.
A rounded bottom is, in simple terms, a dumping of a position by large market participants, when the price is very difficult to keep from falling. When it can no longer be done - phase 3 of the formation begins (i.e., the fall)
The descending of the price - the maximum if followed by the descending, which should be the entry point, and should last as long as the first phase (the price ascending)
MACD shows cross over from the top which also gives bearish signal.
For a long position, better to wait for the completion of the cup formation around 180 which is the support level of the price and a pull back for its handle can be considered for a gain.
On the flip side, if the price breaks and sustains its resistance level of 406 then this formation will be failed and the new bullish cycles may develop.
The upward trend in prices with a gradual slowdown. In the classical case it should represent a smooth arc.
A rounded bottom is, in simple terms, a dumping of a position by large market participants, when the price is very difficult to keep from falling. When it can no longer be done - phase 3 of the formation begins (i.e., the fall)
The descending of the price - the maximum if followed by the descending, which should be the entry point, and should last as long as the first phase (the price ascending)
MACD shows cross over from the top which also gives bearish signal.
For a long position, better to wait for the completion of the cup formation around 180 which is the support level of the price and a pull back for its handle can be considered for a gain.
On the flip side, if the price breaks and sustains its resistance level of 406 then this formation will be failed and the new bullish cycles may develop.
Comment:
Break above resistance level and now retesting it. Bullish momentum established for 450 to 475 target if it gives closing above resistance level.