The Missing LINK: Bulls Search for Continuation
Key Levels and Observations
The $20 level was crucial for potential wave 4 support. While this area was swept, it wasn’t decisively broken, leaving both bullish and bearish scenarios in play. Now, all focus shifts to the retracement as bulls look for internal structure and continuation, while bearish signals hint at further downside.
1️⃣ The Sweep at Support
The yellow zone ($19–$20) absorbed significant liquidity after a sweep below, signaling strong demand. However, the price's inability to decisively move higher leaves uncertainty.
2️⃣ Resistance at $23–$24
Price action is currently stalling near a key resistance zone. Bulls need to reclaim this area for continuation; otherwise, it risks a bearish reversal that could deepen the move down.
3️⃣ Bearish Pattern in Play
The actionary wave, followed by what could be a sideways flat correction, points to a potential bearish scenario. If this pattern holds, we could see a deeper move below the sweep pivot and $20 support.
Next Steps for Traders
📉 Bearish Outlook:
A decisive break below the $20 level could trigger an impulsive move downward. This could lead to a sharper decline, possibly extending beyond a Zigzag structure. Traders should watch for increasing momentum as confirmation.
📈 Bullish Outlook:
If the pivot low holds or price forms a corrective structure into an area of confluence, this may indicate the market wants to move higher. A reclaim of $23–$24 resistance would be an early sign of bullish continuation.
Final Thoughts
The retracement is the key battleground right now. For bulls to gain control, the price must stay internal to the sharp move up following the sweep and confirm continuation. However, bearish signals linger, and caution is essential. Patience and flexibility remain your best tools in navigating this complex setup.
The $20 level was crucial for potential wave 4 support. While this area was swept, it wasn’t decisively broken, leaving both bullish and bearish scenarios in play. Now, all focus shifts to the retracement as bulls look for internal structure and continuation, while bearish signals hint at further downside.
1️⃣ The Sweep at Support
The yellow zone ($19–$20) absorbed significant liquidity after a sweep below, signaling strong demand. However, the price's inability to decisively move higher leaves uncertainty.
2️⃣ Resistance at $23–$24
Price action is currently stalling near a key resistance zone. Bulls need to reclaim this area for continuation; otherwise, it risks a bearish reversal that could deepen the move down.
3️⃣ Bearish Pattern in Play
The actionary wave, followed by what could be a sideways flat correction, points to a potential bearish scenario. If this pattern holds, we could see a deeper move below the sweep pivot and $20 support.
Next Steps for Traders
📉 Bearish Outlook:
A decisive break below the $20 level could trigger an impulsive move downward. This could lead to a sharper decline, possibly extending beyond a Zigzag structure. Traders should watch for increasing momentum as confirmation.
📈 Bullish Outlook:
If the pivot low holds or price forms a corrective structure into an area of confluence, this may indicate the market wants to move higher. A reclaim of $23–$24 resistance would be an early sign of bullish continuation.
Final Thoughts
The retracement is the key battleground right now. For bulls to gain control, the price must stay internal to the sharp move up following the sweep and confirm continuation. However, bearish signals linger, and caution is essential. Patience and flexibility remain your best tools in navigating this complex setup.
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Certified Elliott Wave Analyst Master: t.co/2GQ7uSjJVG?amp=1
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