No way we'll retrace to 8650 and the FIB 0.618 level. Why?
Updated
Because it's the obvious target supported perfectly by TA. So that won't happen!
Let me explain why it's the perfect target and why it will stop higher:
8650 looks picture perfect
* support by the trendline coming up from 6502 at the start of the rally
* 0.618 retracement of the whole move up
* lower trendline of the move down could point to exactly that area
* Sell volume suggests there is still some room for downward movement, because usually the last few drops show declining volume. The last drop actually showed the highest volume
* RSI shows bearish divergence which points to a lot of downward movement
Let me explain why it's the perfect target and why it will stop higher:
8650 looks picture perfect
* support by the trendline coming up from 6502 at the start of the rally
* 0.618 retracement of the whole move up
* lower trendline of the move down could point to exactly that area
* Sell volume suggests there is still some room for downward movement, because usually the last few drops show declining volume. The last drop actually showed the highest volume
* RSI shows bearish divergence which points to a lot of downward movement
Note
And here is why I think 8920-35 is the real target:I have anticipated potential endpoints for the move down and found that 8925 is the confluence of three different FIBs. I have put some text inside the boxes to explain how the analysis works
I have marked the fib reactions yellow at 0.382, 0.618 and 0.786
Note
I also recomment Sumastardons charts if you are looking for perfectly picked resistance and support lines. Here the 8937 one would support the target:tradingview.com/u/sumastardon/
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