Context 1:
Support: $125.50
Resistance: $185.00
Psychological Levels: $150.00 and $190.00
Context 2:
Technical Structure 1: We are in a bearish wedge that has formed the beginning of a bearish channel that has tested support 3 times and tested resistance 4 times.
FVG’s:
FVG Confluence 1: One bearish 4H FVG located bove price. 3 bullish 4H FVG located below price.
Golden Pocket: Sits right below 4H FVG and aligns with the $190.00 Psychological level. Strong confluence.
Context 3:
Volume Insight: Volume Indicator shows a spike in volume from psych level $150.00 and $155.00. Aligning with the POC and a Rejection Block located right above the 0.65 fibbonacci level.
Bullish Scenario: With multiple confluence at the $150.00 psych level, price sweeps the previous low as it bounces off the lower anchored VWAP. This will lead to a completion of a Cup and Handle formation producing enough momentum for a breakout of the Bearish Wedge.
Bearish Scenario: Above the $200.00 psych level remains a Rejection Block. Sweeping this area may lead to enough liquidation to push us back within the Bearish Wedge and allow for a breakout towards the POC.
Support: $125.50
Resistance: $185.00
Psychological Levels: $150.00 and $190.00
Context 2:
Technical Structure 1: We are in a bearish wedge that has formed the beginning of a bearish channel that has tested support 3 times and tested resistance 4 times.
FVG’s:
FVG Confluence 1: One bearish 4H FVG located bove price. 3 bullish 4H FVG located below price.
Golden Pocket: Sits right below 4H FVG and aligns with the $190.00 Psychological level. Strong confluence.
Context 3:
Volume Insight: Volume Indicator shows a spike in volume from psych level $150.00 and $155.00. Aligning with the POC and a Rejection Block located right above the 0.65 fibbonacci level.
Bullish Scenario: With multiple confluence at the $150.00 psych level, price sweeps the previous low as it bounces off the lower anchored VWAP. This will lead to a completion of a Cup and Handle formation producing enough momentum for a breakout of the Bearish Wedge.
Bearish Scenario: Above the $200.00 psych level remains a Rejection Block. Sweeping this area may lead to enough liquidation to push us back within the Bearish Wedge and allow for a breakout towards the POC.
Note
With a double top formation and Upper VWAP resistance at GP#2 ($185.00 Area) we are ascending downwards. There is an RB at psych level $160.00. With the energy from 2 four hour FVG's, we may have enough energy to test the GP area of the initial Bullish move from a support bounce at psych level $125.00. This GP may also align with the lower anchored VWAP adding additional confluence to break through the bottom of the Bearish Wedge allowing for a long postion. Completing our Cup and Handle formation. Happy Trading!
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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.