Price has completed a perfect AB=CD pattern and is now
retracing in a descending channel (Bullish bias). Also note
how the 61,8 fib of CD leg touch the B point nicely. The major
support and first target of the ABCD pattern, is the 38,2 fib of CD leg,
which stands at approximately 49200, which is in confluence with
the lower channel and the cloud in the next few days. Price might
want to reach this level before bulls step in and we can se a shift
in momentum to the upside. First resistance of now stands at the
upper chanel. If price close and hold above the channel, chances
are good that we will see a retest of the ATH, and likely a continuation
of the upward move.
If price close and hold below the 38,2 fib at 49200, chances are we
will see price shift trend to neutral and enter the cloud with target
at the low end of the cloud and ultimately the 61,8 fib of the CD leg
at approx. 41500. Also note (the fib drawn at the far right) how the
61,8 fib of the whole ABCD pattern coincides with the 61,8 fib of the
CD leg at 42000, which brings this level to be the ultimate support
zone for a deep retracement of the ABCD pattern.
retracing in a descending channel (Bullish bias). Also note
how the 61,8 fib of CD leg touch the B point nicely. The major
support and first target of the ABCD pattern, is the 38,2 fib of CD leg,
which stands at approximately 49200, which is in confluence with
the lower channel and the cloud in the next few days. Price might
want to reach this level before bulls step in and we can se a shift
in momentum to the upside. First resistance of now stands at the
upper chanel. If price close and hold above the channel, chances
are good that we will see a retest of the ATH, and likely a continuation
of the upward move.
If price close and hold below the 38,2 fib at 49200, chances are we
will see price shift trend to neutral and enter the cloud with target
at the low end of the cloud and ultimately the 61,8 fib of the CD leg
at approx. 41500. Also note (the fib drawn at the far right) how the
61,8 fib of the whole ABCD pattern coincides with the 61,8 fib of the
CD leg at 42000, which brings this level to be the ultimate support
zone for a deep retracement of the ABCD pattern.