1. We have a firm rejection area turned into resistance here at. The .800 price level, coincidentally tat is near the Fib .789 area. The rejection is further confirmed by a 2-week-old Gann fan line, the top 8/1 line. Two tests of that level in combination with the rejection near the fib .786 level is a bearish sign.
2. Price on the day was mixed. However, prices did. Price closed right on the .618 Fib level.
3. Again, we have a rejection zone here that is acting as support. I drew this Fib level the same time I drew the down trending Gann fan, over two weeks ago. It’s fascinating how much price has respected that .236 level, but look at the volume. It’s very weak compared to higher p areas. Also, that first rejection candle is an important one. Look at the 3 intersecting lines there: Price rejected at the .236 Fib level and it stayed above both the upwards and downwards Gann intersection.
4. We have our swing low here. Almost looks like a tweezer bottom.
5. There is a very important level here coming up on the next daily candle, and that is very similar to the candle I pointed out on number 3: Price is going to be trading right above two intersecting Gann fan lines AND the .5 Fib level. The Gann fan lines are also the same, both 4/1. If price starts to close and trade below the down slope 4/1, probability would suggest we continue to respect the down sloping Gann fan lines and probability would favor further down side movement.
Taking a look at the Renko chart here.
On a 10 tick Renko brick chart, we can clearly see that we are at a resistance zone here. There is evidence of bearish divergence here as well with the close of the previous brick being flat (matching the previous high) and the matching RSI peak being lower. If the close of the next brick is red, I am very bearish.
And push higher with a close above that resistance zone would negate this short analysis, and may create a new push higher.
2. Price on the day was mixed. However, prices did. Price closed right on the .618 Fib level.
3. Again, we have a rejection zone here that is acting as support. I drew this Fib level the same time I drew the down trending Gann fan, over two weeks ago. It’s fascinating how much price has respected that .236 level, but look at the volume. It’s very weak compared to higher p areas. Also, that first rejection candle is an important one. Look at the 3 intersecting lines there: Price rejected at the .236 Fib level and it stayed above both the upwards and downwards Gann intersection.
4. We have our swing low here. Almost looks like a tweezer bottom.
5. There is a very important level here coming up on the next daily candle, and that is very similar to the candle I pointed out on number 3: Price is going to be trading right above two intersecting Gann fan lines AND the .5 Fib level. The Gann fan lines are also the same, both 4/1. If price starts to close and trade below the down slope 4/1, probability would suggest we continue to respect the down sloping Gann fan lines and probability would favor further down side movement.
Taking a look at the Renko chart here.
On a 10 tick Renko brick chart, we can clearly see that we are at a resistance zone here. There is evidence of bearish divergence here as well with the close of the previous brick being flat (matching the previous high) and the matching RSI peak being lower. If the close of the next brick is red, I am very bearish.
And push higher with a close above that resistance zone would negate this short analysis, and may create a new push higher.
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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.
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.