Reasons/Traits : • Ascending triangle pattern breakout seems reached the target (For this pattern targets usually will be the width of current triangle pattern as shown ~16%) • Daily Trend far away from 200 EMA • Uptrend is in pause mode • Bearish Abandoned Baby pattern (last 3 candles) formation seen (very rarely this kind of pattern is seen indicating chances of downtrend) • Doji is formed at the top of the uptrend (Trend uncertainty) • Bearish Engulfing pattern is seen (chances of downtrend) • Volume is decreasing • RSI, Stoch and MACD in overbought zone • ADX is 53 (indicating very strong trend) • Fib level retracement (from 25th Jun) crossed 2.618 levels and last closing candle is exactly at 2.618 • Current uptrend (from 28th Jul) retracement need to happen for a healthy uptrend
What can happen next : Scenario 1 : Price lower than 3808 leads to 3700 to complete retracement of 0.236 levels and move up for a strong uptrend. It can also make a higher low (for the current wave uptrend) till 0.5 or 0.618 levels before moving up. Scenario 2 : Price going up above 3877 can test 3.618 levels (4080)
3350-3380 levels is very strong support zone. Let’s see..
Disclaimer : This analysis is only for educational purpose and not be considered as any trading idea/tip. Please consult your financial advisor before you take any trade and we are no way responsible for your profits/losses. Thank you!
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Consolidation phase, 2.618 upside is giving a good support so far