- Two critical support zones correspond with the 0.382 and 0.618 Fibonacci retracement levels of the entire swing from A to B, enhancing the significance of these support levels.
- After two months of ranging, the price finally broke below the critical support zone as volume spiked, confirming the breakout and leading to a significant drop.
- If the price does not return above the first support zone, two potential target prices can be anticipated:
1. A 100% extension of the large purple box.
2. A 100% extension of the small blue box. Note that this target price perfectly aligns with the previous key resistance-turned-support level.
Not Financial Advice
The information contained in this article is not intended as, and should not be understood as financial advice. You should take independent financial advice from a professional who is aware of the facts and circumstances of your individual situation.
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The price has returned above the first support zone, which means the previous setup doesn't hold anymore. So, let's just move on. For bulls, it might be safer to wait until the downtrend channel is broken before jumping in.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.