The strength of 6500 support
Take a look at the blue trend line, it has provided support for all major low points since October 2017. It has been acting as strong support and resistance for the last year, and when price broke
through it, price came back to test it as support 3 times. After the 3rd test price went on
its crazy rally towards the end of last year.
We are now at this blue trend line again, which currently coincides with the 6500 horizontal support (not drawn on this chart). So we have double support at 6500. Surely, with double support, one of which is a trendline that has held as support since October 2017, it will take a LOT to break to it's downside. The probability of going lower than 6500 is very low in my opinion.
On the 4 hour chart we have also got price rejection candles forming on this blue trendline.
Furthermore, on the daily, when RSI touches or barely goes into "oversold" it comes back out with strength.
It touched oversold on the 30th of March.
I think this 6500 is extremely strong, and we may not break through it. I could be wrong of course, this is just my opinion. For education purposes only.
through it, price came back to test it as support 3 times. After the 3rd test price went on
its crazy rally towards the end of last year.
We are now at this blue trend line again, which currently coincides with the 6500 horizontal support (not drawn on this chart). So we have double support at 6500. Surely, with double support, one of which is a trendline that has held as support since October 2017, it will take a LOT to break to it's downside. The probability of going lower than 6500 is very low in my opinion.
On the 4 hour chart we have also got price rejection candles forming on this blue trendline.
Furthermore, on the daily, when RSI touches or barely goes into "oversold" it comes back out with strength.
It touched oversold on the 30th of March.
I think this 6500 is extremely strong, and we may not break through it. I could be wrong of course, this is just my opinion. For education purposes only.
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