The wave structure marked in red often indicates a corrective move. While it appears impulsive at first glance, such formations typically end with a strong candle in the direction of the trend, followed by a full retracement.
This rally is likely not a new bullish impulse but a complex correction within a broader downtrend. Volume remains relatively muted compared to previous sell-offs, reinforcing the corrective nature of the current wave.
Due to the structure's unreliability and tendency to reverse sharply, this is a highly dangerous zone to enter a long. However, for experienced traders, a minimal long position with a trailing stop may be considered for a final push toward the resistance zone around $590.
A failure to break that zone with volume will likely lead to a rapid decline back to previous lows around $400 or even $360.
This rally is likely not a new bullish impulse but a complex correction within a broader downtrend. Volume remains relatively muted compared to previous sell-offs, reinforcing the corrective nature of the current wave.
Due to the structure's unreliability and tendency to reverse sharply, this is a highly dangerous zone to enter a long. However, for experienced traders, a minimal long position with a trailing stop may be considered for a final push toward the resistance zone around $590.
A failure to break that zone with volume will likely lead to a rapid decline back to previous lows around $400 or even $360.
Trade closed: stop reached
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💼 Professional market insights & charts:
cakirinsights.com/
cakirinsights.com/
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.