At the previous February 6k low, price touched the long term channel (purple). It will likely soon re-test that channel.
Watch closely at the 6800-7000 area to see how strong any buying volume is.
If we see a huge buying spike like the previous 6k low this may signal a bottom and trend reversal.
However if buying volume is average, we may have a lot further down to go.
Remember, we are STILL in a longer term down trend until previous highs (yellow horizontals) are broken. ie. 10k area.
I have marked out the next lower channel around 4k levels, just in case this current channel is broken.
Watch closely at the 6800-7000 area to see how strong any buying volume is.
If we see a huge buying spike like the previous 6k low this may signal a bottom and trend reversal.
However if buying volume is average, we may have a lot further down to go.
Remember, we are STILL in a longer term down trend until previous highs (yellow horizontals) are broken. ie. 10k area.
I have marked out the next lower channel around 4k levels, just in case this current channel is broken.