Market next move

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1. Resistance Zone Already Tested

The price is currently testing a resistance zone (highlighted in red). Historically, prices have reversed from such levels unless there's a strong breakout catalyst. Without a clear breakout and volume confirmation above this zone, a reversal is plausible.

Bearish View:
If price fails to close decisively above 3,320–3,325, it may indicate a double top or false breakout setup, leading to a correction back toward 3,275 or lower.


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2. Volume Divergence

Look at the declining volume bars while price pushes upward. This is a bearish divergence, suggesting weakening momentum behind the rally.

Bearish Implication:
Without increasing volume, the current move may lack the strength to sustain higher levels, opening the door for a pullback.


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3. Overbought Short-Term RSI (not shown)

Assuming an RSI or momentum oscillator is present (often used with this type of analysis), there’s a high likelihood it is nearing overbought levels based on recent price action.

Bearish Risk:
Overbought conditions often precede short-term pullbacks or consolidations.


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4. Potential Fake Breakout (Bull Trap)

The blue and yellow arrows suggest a breakout and continuation. However, a fakeout above resistance (bull trap) could lure buyers in before a reversal.

Disruption Scenario:
Price spikes above the resistance zone briefly, then sharply reverses and closes below the red box, leading to a fast drop as trapped longs exit.

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