The price action has responded precisely to the support level I highlighted yesterday, rebounding with remarkable accuracy. This movement is part of a broader pattern, as the market has been confined within a descending channel. This channel has essentially acted as a temporary retracement against the dominant trend. Currently, we are witnessing an attempt by the market to break above this channel. Should we see a decisive breakout with a confirmed close above the upper boundary, it could signal the beginning of a strong bullish trend.
However, I wouldn’t be surprised if the price revisits the support zone before embarking on a more sustained upward trajectory. This is particularly likely in light of the rejection candle observed on the 4-hour chart, which hints at some short-term hesitation. My ultimate target remains the resistance level around 2668.50, as this represents a key area of interest for potential sellers.
In summary, while the breakout could ignite bullish momentum, a retest of support seems probable before any substantial move towards the resistance.
Traders, if you found this idea helpful or have your own insights to share, feel free to drop a comment. I’d love to hear your thoughts!
However, I wouldn’t be surprised if the price revisits the support zone before embarking on a more sustained upward trajectory. This is particularly likely in light of the rejection candle observed on the 4-hour chart, which hints at some short-term hesitation. My ultimate target remains the resistance level around 2668.50, as this represents a key area of interest for potential sellers.
In summary, while the breakout could ignite bullish momentum, a retest of support seems probable before any substantial move towards the resistance.
Traders, if you found this idea helpful or have your own insights to share, feel free to drop a comment. I’d love to hear your thoughts!
Trade closed: target reached
target reached.
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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.