We always start our analysis by looking at the H4 charts.
- Previous trend is down
- There is no change to the down trend yet however from the recent boxes we can see price is more up.
- Price is currently at a resistance, price needs to clear this resistances if it were to head higher.
Where did this two resistances come from?
Let’s look at the Big Picture on a higher time frame.
- On the Weekly charts, we see recent turning points at previous support levels. This in-turn becoming possible resistances now that price is below.
- Putting in the boxes, we also see that if price can clear the higher of the 2 resistances, it would have effectively done a WR of 2 years low.
So, what now?
When the charts do not offer a direction, do not over predict. Instead wait for the market to let you know. However this doesn’t mean we cannot prepare for either possibilities.
Possibility #1: Price continues down (H4T)
- Price needs to remain below the resistance levels over head.
- For price to move lower, it has to close convincingly below the lowest of the H4 boxes high.
Possibility #2: Price turns up (H4R)
- On the D1 charts, we can see a small IHS already formed and also a possibility of a large one.
- Ultimately price needs to clear the current resistance for it to have any chance to head higher up.
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