Especially for my beloved brother, who likes Microsoft (MSFT) stocks.
On the weekly chart, we have a sideways pattern. The price has played out vector 10-11 and is currently forming a bearish vector 11-12 within the sideways range.
The daily chart also shows a sideways pattern. The bearish vector 9-10 has been technically played out. However, a significant selling zone has formed almost throughout the sideways range, triggered by the candle on 25.10.23, which incidentally had the highest trading volume in the last 3 months. The zone was tested by the candle on 27.10.23, The seller resumed from the zone, as indicated by the candle's wick.
The most likely scenario is for the price to break out of the daily sideways range to the downside (lower boundary at 324.39), protect this breakout, and play out the bearish vector of the weekly sideways pattern.
Targets for short positions:
Good luck with your trading!
Disclaimer:
This case study is for educational purposes only and does not constitute investment advice or recommendations.
The trading or investment ideas presented here are for illustrative purposes only and are an integral part of a case study demonstrating the concepts of using volume to analyze or trade within the market scenarios discussed.
On the weekly chart, we have a sideways pattern. The price has played out vector 10-11 and is currently forming a bearish vector 11-12 within the sideways range.
The daily chart also shows a sideways pattern. The bearish vector 9-10 has been technically played out. However, a significant selling zone has formed almost throughout the sideways range, triggered by the candle on 25.10.23, which incidentally had the highest trading volume in the last 3 months. The zone was tested by the candle on 27.10.23, The seller resumed from the zone, as indicated by the candle's wick.
The most likely scenario is for the price to break out of the daily sideways range to the downside (lower boundary at 324.39), protect this breakout, and play out the bearish vector of the weekly sideways pattern.
Targets for short positions:
- 309.5 - the lower boundary of the weekly sideways pattern.
- 295 - the extremum pierced by the candle on April 24, 2023.
- 275 - the buyer's zone at the lower boundary of the monthly sideways pattern.
Good luck with your trading!
Disclaimer:
This case study is for educational purposes only and does not constitute investment advice or recommendations.
The trading or investment ideas presented here are for illustrative purposes only and are an integral part of a case study demonstrating the concepts of using volume to analyze or trade within the market scenarios discussed.
Good luck with your trading!