The recent uptrend started on October 31st and was strong enough to break out of the first down trend (labeled as "Cleared"). After a huge pump in volume a new downtrend within the uptrend (bull wedge) began to form but the volume is decreasing and that's normal in uptrends.
So the most likely scenario is labeled as #1. But we need to see higher volumes when breaking that red line. Otherwise, it would be a trap. The yellow line is our current uptrend and should stay intact for #1 to happen. It it breaks down we should lean toward the second scenario labeled #2. There we have to watch for our support levels and see if they are broken with volume or just tested for a new bull run continuation.
Refer to my tutorial on volumes for more detailed instructions on why that's normal.
So the most likely scenario is labeled as #1. But we need to see higher volumes when breaking that red line. Otherwise, it would be a trap. The yellow line is our current uptrend and should stay intact for #1 to happen. It it breaks down we should lean toward the second scenario labeled #2. There we have to watch for our support levels and see if they are broken with volume or just tested for a new bull run continuation.
Refer to my tutorial on volumes for more detailed instructions on why that's normal.
Note
There is a third scenario where there is will be a double bottom at the major resistance.Note
If the current green candle holds for the next two hours, the breakout is confirmed.Note
It did not and we are heading toward the scenario #2Trade closed: target reached
Market Maven: Never Miss a Move.
Disclaimer: This is not a financial advice and all posts are for educational purposes only.
Disclaimer: This is not a financial advice and all posts are for educational purposes only.
Related publications
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.
Market Maven: Never Miss a Move.
Disclaimer: This is not a financial advice and all posts are for educational purposes only.
Disclaimer: This is not a financial advice and all posts are for educational purposes only.
Related publications
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.