The recent uptrend started on October 31st and was strong enough to break out of the first down trend (labeled as "Cleared"). After a huge pump in volume a new downtrend within the uptrend (bull wedge) began to form but the volume is decreasing and that's normal in uptrends.
So the most likely scenario is labeled as #1. But we need to see higher volumes when breaking that red line. Otherwise, it would be a trap. The yellow line is our current uptrend and should stay intact for #1 to happen. It it breaks down we should lean toward the second scenario labeled #2. There we have to watch for our support levels and see if they are broken with volume or just tested for a new bull run continuation.
Refer to my tutorial on volumes for more detailed instructions on why that's normal.
So the most likely scenario is labeled as #1. But we need to see higher volumes when breaking that red line. Otherwise, it would be a trap. The yellow line is our current uptrend and should stay intact for #1 to happen. It it breaks down we should lean toward the second scenario labeled #2. There we have to watch for our support levels and see if they are broken with volume or just tested for a new bull run continuation.
Refer to my tutorial on volumes for more detailed instructions on why that's normal.
Comment:
There is a third scenario where there is will be a double bottom at the major resistance.
Comment:
If the current green candle holds for the next two hours, the breakout is confirmed.
Comment:
It did not and we are heading toward the scenario #2
Trade closed: target reached
