Key intakes on this market:
- Downtrending with a neat series of lower highs & lower lows since mid 2021.
- Under normal circumstances this would give us a short bias. Howevers the price happens to be trading at/near a long term key demand area (run a volume profile of this market you will see that this is the most congested area).
- Momentum trending downwards since mid 2021 .... well, until this month. Month not closed yet, if it does close as is, similar or above then the momentum shifts as neatly displayed by the RSI plot.
- If you are already bullish, I invite you to hold your horses. The size of the most recent bearish candles is not enthusiastic for the bull. The volume is also not remarkable. Why is this bearishn hint? Because they should (be remarkable)! At this area you would expect a stronger bullish reaction (so far).
- Ok, then where to go from here? As mentioned above the price is at an inflection area, a demand zone, kissing the trendline. What does it tell you if it crosses and closes above with all the previous hints in mind? (Hint: the bears that have been seen this trendline respected and trusted no longer will)
- Conversely, what does it tell you if it breaks and closes below this area? (Hint: either those who had been giving support no longer are or they still hold long positions and are very keen to cut the losses they'll be seeing in their P&L )
- Downtrending with a neat series of lower highs & lower lows since mid 2021.
- Under normal circumstances this would give us a short bias. Howevers the price happens to be trading at/near a long term key demand area (run a volume profile of this market you will see that this is the most congested area).
- Momentum trending downwards since mid 2021 .... well, until this month. Month not closed yet, if it does close as is, similar or above then the momentum shifts as neatly displayed by the RSI plot.
- If you are already bullish, I invite you to hold your horses. The size of the most recent bearish candles is not enthusiastic for the bull. The volume is also not remarkable. Why is this bearishn hint? Because they should (be remarkable)! At this area you would expect a stronger bullish reaction (so far).
- Ok, then where to go from here? As mentioned above the price is at an inflection area, a demand zone, kissing the trendline. What does it tell you if it crosses and closes above with all the previous hints in mind? (Hint: the bears that have been seen this trendline respected and trusted no longer will)
- Conversely, what does it tell you if it breaks and closes below this area? (Hint: either those who had been giving support no longer are or they still hold long positions and are very keen to cut the losses they'll be seeing in their P&L )