If the weekly chart looks pretty good in long run, but what about the lower time frame? If we look at the daily chart
, we can see that the price tries to break the downtrend line. The previous attempt was not successful, but the price also could not stay below 10000.00, a strong psychological level. It can be a signal that the bears are not so strong as before. Also we have to pay attention to another signal which the market is going to give us soon. The price forms an Inverse Head and Shoulders
chart pattern. It belongs to a reversal group of patterns. If the price breaks the downtrend line and after that a neckline, the iH&S will be confirmed and it gives us a trend reversal signal. We should be ready to see a new uptrend. Just it will be better to wait for a breakout above 12000.00 resistance level
, as an additional signal confirming the upward movement.
If we look at the main indicators, we can get following signals. RSI
confirmed the price reversal from 9200.00 level. MACD
histogram and lines support a possible upward movement. ADX
line falls to 20 level and it does not confirm any strong price movements. But DMI becomes bullish
and when ADX
line rise, it will be a good confirmation for a possible breakout above the resistance zone
formed by the downtrend line, the neckline and 12000.00 resistance level
Alternative variant: if the price can't break above the resistance zone
, we should be ready to see a downward movement. If the market drops below the right shoulder, it will be able to drop to the support zone
at the uptrend lines and 6000.00 support level
. We'll have to watch closely for price action in this zone, because the market will be able to give good buy signals. Probably we'll get a double bottom
pattern and this zone will be a good starting point for a new upward movement.