The structure forming from June 27 to July 8 appears to be a diamond top, a reversal pattern often seen after uptrends.
Price expanded (broadening left) and then started converging (right side) — classic diamond symmetry.
It has developed right at the macro trendline resistance (~109.5K), increasing its reliability.
Volume has declined during the right half of the diamond, which is consistent with pattern expectations.
✅ Implications of Diamond Pattern
Bearish Bias (Diamond Top):
If price breaks below the lower boundary (~107.8K), it confirms the pattern → potential move to 104.5K–102.5K zone.
Measured move ≈ height of pattern (109.8K–106K) ≈ 3.8K drop.
Invalidation/Bullish Flip:
Break and hold above 109.5K with volume would invalidate the bearish diamond.
In that case, it flips into a squeeze breakout with upside to 110.8K–111.5K+.
🎯 Conclusion:
The diamond top, combined with macro resistance and declining volume, strengthens the bearish breakdown scenario.
However, no confirmation yet — remain neutral to bearish unless either:
✅ Clean breakout >109.5K
🔻 Breakdown <107.8K with volume
Price expanded (broadening left) and then started converging (right side) — classic diamond symmetry.
It has developed right at the macro trendline resistance (~109.5K), increasing its reliability.
Volume has declined during the right half of the diamond, which is consistent with pattern expectations.
✅ Implications of Diamond Pattern
Bearish Bias (Diamond Top):
If price breaks below the lower boundary (~107.8K), it confirms the pattern → potential move to 104.5K–102.5K zone.
Measured move ≈ height of pattern (109.8K–106K) ≈ 3.8K drop.
Invalidation/Bullish Flip:
Break and hold above 109.5K with volume would invalidate the bearish diamond.
In that case, it flips into a squeeze breakout with upside to 110.8K–111.5K+.
🎯 Conclusion:
The diamond top, combined with macro resistance and declining volume, strengthens the bearish breakdown scenario.
However, no confirmation yet — remain neutral to bearish unless either:
✅ Clean breakout >109.5K
🔻 Breakdown <107.8K with volume
A Haque
Founder | MyTradingJournal
📊 Financial Market Analyst | Trader | Educator
🐦 Twitter: @MyTradingJnl6th
📺 YouTube: @MyTradingJournal6th
Founder | MyTradingJournal
📊 Financial Market Analyst | Trader | Educator
🐦 Twitter: @MyTradingJnl6th
📺 YouTube: @MyTradingJournal6th
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.
A Haque
Founder | MyTradingJournal
📊 Financial Market Analyst | Trader | Educator
🐦 Twitter: @MyTradingJnl6th
📺 YouTube: @MyTradingJournal6th
Founder | MyTradingJournal
📊 Financial Market Analyst | Trader | Educator
🐦 Twitter: @MyTradingJnl6th
📺 YouTube: @MyTradingJournal6th
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.