Note: All of what I claim below is simply the way I perceive the market. I am not certain nor do I suggest you take my advice without first taking into consideration what I have said. Whatever you do, be critical of what everyone claims. Those who claim certainty in these markets tend to get hurt the most.
Observations:
Look how price broke out of the diagonal trendline B with strong buying volume following along. This is a good sign. But even then, it’s best to be ready for anything to happen in this market, especially if day trading is your goal.
Now look at how price action bounced off of horizontal trendline E, creating a bullish divergence between price and RSI. This is another positive sign.
Horizontal trendline E was a strong area of support and has now been further strengthened by that bounce.
Price is currently back to a strong area of resistance (Green rectangle A). This area is considered a strong resistance level due to the previous price action within it.
I personally believe that we may see price move up to experience resistance on diagonal trendline D, which is the current downward trendline on the 4Hr & 1D intervals. If price pushes above this area, I expect a continuation up.
If not, then I picture a move back down to horizontal trendline E to experience some more resistance. If it falls below that, then expect a further decline.
Thank you for reading,
Have a nice day!
Observations:
Look how price broke out of the diagonal trendline B with strong buying volume following along. This is a good sign. But even then, it’s best to be ready for anything to happen in this market, especially if day trading is your goal.
Now look at how price action bounced off of horizontal trendline E, creating a bullish divergence between price and RSI. This is another positive sign.
Horizontal trendline E was a strong area of support and has now been further strengthened by that bounce.
Price is currently back to a strong area of resistance (Green rectangle A). This area is considered a strong resistance level due to the previous price action within it.
I personally believe that we may see price move up to experience resistance on diagonal trendline D, which is the current downward trendline on the 4Hr & 1D intervals. If price pushes above this area, I expect a continuation up.
If not, then I picture a move back down to horizontal trendline E to experience some more resistance. If it falls below that, then expect a further decline.
Thank you for reading,
Have a nice day!