I highlighted it with a circle, there was two rejection of the trendline/neckline, followed by a double bottom
There is a huge similitude with the current price development and it's frequent to see pattern reproducing themselves at different scales
The declining volume of the second trough and it's rounded shape seemed to first indicate the hesitation of sellers more than the failure of the bull to break above.
To confirm it, the volume and CMF will be crucial, whether in a uptrend or downtrend price is like to reach the red dotted target, but how it does so will give us a the hint of what comes next.
CMF shouldn't fall bellow the red dotted line and turn green
And volume need to increase along the arrow toward the trendline
Seeing a gap on that move would be a great addition to a bullish scenario
Corresponding targets in orange above
If this fail to be seen, the alternate scenario is an ABC correction, the target is in pink which also match perfectly fib 0.238 and the entry would be once a full candle closes below the blue support line on H4. Looking at this previous extra long wick, be extra careful there in case of a stop hunt.
There is a huge similitude with the current price development and it's frequent to see pattern reproducing themselves at different scales
The declining volume of the second trough and it's rounded shape seemed to first indicate the hesitation of sellers more than the failure of the bull to break above.
To confirm it, the volume and CMF will be crucial, whether in a uptrend or downtrend price is like to reach the red dotted target, but how it does so will give us a the hint of what comes next.
CMF shouldn't fall bellow the red dotted line and turn green
And volume need to increase along the arrow toward the trendline
Seeing a gap on that move would be a great addition to a bullish scenario
Corresponding targets in orange above
If this fail to be seen, the alternate scenario is an ABC correction, the target is in pink which also match perfectly fib 0.238 and the entry would be once a full candle closes below the blue support line on H4. Looking at this previous extra long wick, be extra careful there in case of a stop hunt.