to break out of the . It did so on the hourly chart but on H4
timeframe, it never closed below. It has found support for now around Weekly R1 with
that long , showing buyer strength below. The red marked
zone is a confluence that may be the next
target, or could be used as a target on longs from here.
Bulls do not want to see a close below the channel and the red
support line at 2.47. It would likely induce a drop towards the
Cloud and or the 2.03 previous . If indecision
prevails for longer time, we may see it crawl sideways , like in
previous congestions, until it hits the Cloud. That is one likely
scenario, if neither up or down momentum appears.
One has to note how far off from the SMA200 price is trading,
which normally may cause a drop or sideways action in a
sort of overbought situation.
Note how the top of Dec 4 just touched the Weekly R2 and the
channel top simultaneously, which sparked the sell off (as a
technician sees it). The second attempt to break higher was
then rejected by the R1 confluence. Also note how the last
big leg up started by a neat touch of the lower channel and
the Weekly on the Jan 01 . It is clear that Weekly
carry much significance, as well as the established channel.