Head and shoulder on the weekly chart
Several bearish signs are visible on the weekly chart.
Let's take the Head and Shoulder pattern as our first example.
We are touching its base (52.6) for the third time and did not bounce, meanwhile, the overall market rebounds (a bit).
Second, the support-line (March 2020) broke and acts now as a resistance.
The price even touched it once, and was rejected (31 May, 64.08).
Besides, the RSI indicator is constantly decreasing and is far from oversold.
Taking this information into account, the next support could be either the S1 weekly Pivot (43.23) or the volume shelf (40.12).
However, please note that a bullish divergence is starting to play out.
Bullish divergence is when the price makes a lower low, but a higher high appears on an indicator (MACD).
Let's take the Head and Shoulder pattern as our first example.
We are touching its base (52.6) for the third time and did not bounce, meanwhile, the overall market rebounds (a bit).
Second, the support-line (March 2020) broke and acts now as a resistance.
The price even touched it once, and was rejected (31 May, 64.08).
Besides, the RSI indicator is constantly decreasing and is far from oversold.
Taking this information into account, the next support could be either the S1 weekly Pivot (43.23) or the volume shelf (40.12).
However, please note that a bullish divergence is starting to play out.
Bullish divergence is when the price makes a lower low, but a higher high appears on an indicator (MACD).
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