As mentioned previously, the sell zone is validated if and when we break the 360 support level. We had a daily close below 360 yesterday. Today's price action may seem like a reversal, but a crucial point must be made: we have not made a higher high yet on the daily time frame. I see today as a reflexive bounce, not as a reversal.
With 360 broken, we also have a H&S pattern, with around 346 being the next target. 346 is also a support level from May 31.
Further on down (if we get there) is the 332 level which corresponds to the 0.5 fib level and an unfilled gap from May 25th. This is a level with support from the 1W MA as well, so that is where I would look for a real bounce long term.
With 360 broken, we also have a H&S pattern, with around 346 being the next target. 346 is also a support level from May 31.
Further on down (if we get there) is the 332 level which corresponds to the 0.5 fib level and an unfilled gap from May 25th. This is a level with support from the 1W MA as well, so that is where I would look for a real bounce long term.
Comment:
The sell zone has been invalidated. We have gotten above the 376 resistance level.
