Price is moving inside a triangle pattern. Currently testing resistance at 30.50-32.00 region. There are two scenarios:
1) If this resistance is broken, we will be on the 5th Elliot wave aiming for a breakout above the triangle. this would signal a long term uptrend.
2) If this resistance is respected, a H&S pattern is formed and the next line of support at 23-24 region is critical. Likely, price will break below this line of support and move towards the bottom of the triangle.
In my opinion the second scenario is more likely since the last wave upwards didn't reach the height of the previous wave upwards despite increased volume meaning buying interest has diminished.
This is not financial advice, just my ideas. Please let me know what you think.
1) If this resistance is broken, we will be on the 5th Elliot wave aiming for a breakout above the triangle. this would signal a long term uptrend.
2) If this resistance is respected, a H&S pattern is formed and the next line of support at 23-24 region is critical. Likely, price will break below this line of support and move towards the bottom of the triangle.
In my opinion the second scenario is more likely since the last wave upwards didn't reach the height of the previous wave upwards despite increased volume meaning buying interest has diminished.
This is not financial advice, just my ideas. Please let me know what you think.