This was more of a request from another member @jreback Just to be clear I'm not trading this market right now.
First thing I see is the ascending wedge that formed back at the start of July, this is one of the only types of Break out patterns I trade to the Upside as it generally offers great Risk to Reward and fast price action with very little market structure to clear to the left. How ever the failure on the squeeze saw selling pressure take over and win this battle so more downside coming.
Current market structure is a slow bleed as we find new lows, the support level marked is formed from structure back on the uptrend a few months ago.
One thing i noticed is the large volume spike over the last few days didnt really have the price action you woul expect and noticing 5 short candles with large wicks to the upside tells me a lot of that volume spiking is sellers pushing price down as there is obviously a large supply at that level.
Im assuming this may continue to bleed lower over the next week or so and would look for a new reaction on the candles when coming to that support level around 171.
Watch those 2 small circle areas from the lower support of this range, an early break could see a much faster drop imo.
First thing I see is the ascending wedge that formed back at the start of July, this is one of the only types of Break out patterns I trade to the Upside as it generally offers great Risk to Reward and fast price action with very little market structure to clear to the left. How ever the failure on the squeeze saw selling pressure take over and win this battle so more downside coming.
Current market structure is a slow bleed as we find new lows, the support level marked is formed from structure back on the uptrend a few months ago.
One thing i noticed is the large volume spike over the last few days didnt really have the price action you woul expect and noticing 5 short candles with large wicks to the upside tells me a lot of that volume spiking is sellers pushing price down as there is obviously a large supply at that level.
Im assuming this may continue to bleed lower over the next week or so and would look for a new reaction on the candles when coming to that support level around 171.
Watch those 2 small circle areas from the lower support of this range, an early break could see a much faster drop imo.