Relevant levels and possible directions on META
Today we will take a look at META.
What are the main technical elements we can see?
- We can see two clear impulses and two clear corrections. The first correction was an ABCDE triangle pattern. And the current correction is an ABC zig-zag pattern (for now)
- Understanding corrective structures is crucial to have clarity when a correction is finished or when I should keep waiting for it. In this situation, the ABC pattern is completed. So it's interesting to start thinking about possible directions the price may take.
-We have defined two possible paths the price can take; let's understand each of them.
* In the first scenario, the price reaches the correction´s descending trendline and cannot break it from there. We see a bearish movement towards the previous support level at
around 300.00
* The second scenario, the price breaks the correction and goes above the broken ascending trendline again. After that, we observe a retest of it and a bullish continuation towards the previous ATH.
Of course, it's impossible to say what will happen; however, I would be interested in the bullish scenario to develop setups around that retest. Otherwise, I'm not interested in trading here.
-The main concept of this post is to define relevant levels that traders may use depending on their style.
Thanks for reading! Feel free to share your view and chart in the comments!
What are the main technical elements we can see?
- We can see two clear impulses and two clear corrections. The first correction was an ABCDE triangle pattern. And the current correction is an ABC zig-zag pattern (for now)
- Understanding corrective structures is crucial to have clarity when a correction is finished or when I should keep waiting for it. In this situation, the ABC pattern is completed. So it's interesting to start thinking about possible directions the price may take.
-We have defined two possible paths the price can take; let's understand each of them.
* In the first scenario, the price reaches the correction´s descending trendline and cannot break it from there. We see a bearish movement towards the previous support level at
around 300.00
* The second scenario, the price breaks the correction and goes above the broken ascending trendline again. After that, we observe a retest of it and a bullish continuation towards the previous ATH.
Of course, it's impossible to say what will happen; however, I would be interested in the bullish scenario to develop setups around that retest. Otherwise, I'm not interested in trading here.
-The main concept of this post is to define relevant levels that traders may use depending on their style.
Thanks for reading! Feel free to share your view and chart in the comments!
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.