Update from previous idea:
Price has formed more structure now on the bigger timeframes, can see I have drawn a W pattern here, if this is a real W pattern it is extremely bullish, not just because it is a bullish breakout pattern but also the way the second phase down has happened, not allowing price to get close to the previous low.
anyway, it has broken the neckline here and yesterday we got as perfect retest of this level, no volume bounce though so be careful here. price target here is at the 4655 level which is also a previous swing high level, so expect nice resistance from here, ideally we are looking to get a small wick above the price target creating a new swing high, showing strong signs of a reversal.
right now we are looking to keep higher highs and high lows, we are at a breaking point here, we need to see strength at the support level breaking this invalidates the pattern and makes a lower low. we also want to see us break up making a higher high but that will be confirmation of a break out so that's the 2 scenarios that could play out today.
Price has formed more structure now on the bigger timeframes, can see I have drawn a W pattern here, if this is a real W pattern it is extremely bullish, not just because it is a bullish breakout pattern but also the way the second phase down has happened, not allowing price to get close to the previous low.
anyway, it has broken the neckline here and yesterday we got as perfect retest of this level, no volume bounce though so be careful here. price target here is at the 4655 level which is also a previous swing high level, so expect nice resistance from here, ideally we are looking to get a small wick above the price target creating a new swing high, showing strong signs of a reversal.
right now we are looking to keep higher highs and high lows, we are at a breaking point here, we need to see strength at the support level breaking this invalidates the pattern and makes a lower low. we also want to see us break up making a higher high but that will be confirmation of a break out so that's the 2 scenarios that could play out today.
