Regarding how price action will play out over these next couple months, there's 3 likely scenarios, and it involves how price will interaction with the daily 200 MA:
BLUE: Price makes a convincing break above the daily 200 MA, retests it, and then surges onward, continuing the long-term bullish trend.
PURPLE: Price falsely breaks above the daily 200 MA and tests the 600 psychological level, rejects it, and falls back below the daily 200 MA and retests it, thus creating a H&S pattern and confirming the continuation of the bearish trend.
RED: Price rejects the daily 200 MA, and continues the bearish trend, ultimately forming a new low.
BLUE: Price makes a convincing break above the daily 200 MA, retests it, and then surges onward, continuing the long-term bullish trend.
PURPLE: Price falsely breaks above the daily 200 MA and tests the 600 psychological level, rejects it, and falls back below the daily 200 MA and retests it, thus creating a H&S pattern and confirming the continuation of the bearish trend.
RED: Price rejects the daily 200 MA, and continues the bearish trend, ultimately forming a new low.
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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.