If we look at the volume profile since the fall from 6k we can see some very defined levels.
i) Value Area High: 4105 this will be our major resistance moving forward.
ii) Value Area Low: 3346 this will be our major support moving forward.
iii) Current POC: 3581 this will be our zone to watch for a further retracement downward.
iiii) Developing POC: 3800 this will be the new POC if volume picks up here and remains at this zone. If 3800 becomes POC then we will look for buyers to begin to push price off of that level and begin to move upward to take 4105.
Another thing to note is where we just bounced. It lines up perfectly with the last two swing lows, giving us a very clear up trend.
i) Value Area High: 4105 this will be our major resistance moving forward.
ii) Value Area Low: 3346 this will be our major support moving forward.
iii) Current POC: 3581 this will be our zone to watch for a further retracement downward.
iiii) Developing POC: 3800 this will be the new POC if volume picks up here and remains at this zone. If 3800 becomes POC then we will look for buyers to begin to push price off of that level and begin to move upward to take 4105.
Another thing to note is where we just bounced. It lines up perfectly with the last two swing lows, giving us a very clear up trend.