Analyzing the 4H chart, a terribly ugly ascending triangle in this downtrend has formed with a pole formed by an enthusiastic sell off. ~ -$130 USD. I would assume seeing the this formation and the dramatic selloff leading into it that a further breakout to the downside would have occurred last night. Since then it has gone on to test the upper limit of the triangle again and after two 4H periods failed to break past the resistance. Now the formation looks to be completing with decreasing volume, two swing highs completed, and a drop to the bottom of the triangle would create a second low while approaching the apex signaling increased potential of breakout lower. Statiscally, ascending triangles that form in a downtrend are some of the best performers for bearish continuation. Although if it continues to trade sideways with no attempt on the triangle support line, we could avoid another selloff and reevaluate.
Target $460 if triangle breakout with volume increase occurs. This target coincides with the .786 Fib line and could a good long re-entry point. We will have to wait and see.
***This is not a recommendation to buy or sell. Please do your own research and make educated trading decisions***
Target $460 if triangle breakout with volume increase occurs. This target coincides with the .786 Fib line and could a good long re-entry point. We will have to wait and see.
***This is not a recommendation to buy or sell. Please do your own research and make educated trading decisions***
Comment:
Uptick in volume and a breakout of the triangle. Let's see where she goes...
Comment:
Looks like the .618 FIb line is trying to hold. I am not sure that it will.
