UPDATE - Reversal target reached, now what?
Updated
This is an update to my previous idea.
Price successfully bounced at the reversal target and is now showing momentum and trend reversal to the upside. As price continues upward there are two key resistance levels to be aware of (R1 R2). The break and successful retest of R1 could send price to test R2, if price finds resistance at R1 a retest of support may occur.
Trend 12EMA & 50EMA – Daily 12EMA has crossed the 50EMA to the upside signaling the start of a new uptrend. Watch for price to hold support at 12EMA for confirmation.
Momentum RSI (10 close) - RSI has broken through and is now finding support above the midline. Watch for RSI to hold the support level to maintain bullish momentum. A break through the downtrend resistance channel will be added confirmation of strong bullish momentum.
Support & Resistance – The support level is defined by the price action on 3/9, 3/10, and 3/12. R1 is defined by the price action on 2/24, 2/25, 3/1, and 3/2. R2 is defined by the price action on 2/16, 2/17, and 2/19.
Trend Line – The uptrend support channel is defined by the close on 10/30 and the low on 3/5.
I welcome any critiques, comments, or questions, thank you for looking!
This idea is for discussion purposes only and is not trading advice.
Price successfully bounced at the reversal target and is now showing momentum and trend reversal to the upside. As price continues upward there are two key resistance levels to be aware of (R1 R2). The break and successful retest of R1 could send price to test R2, if price finds resistance at R1 a retest of support may occur.
Trend 12EMA & 50EMA – Daily 12EMA has crossed the 50EMA to the upside signaling the start of a new uptrend. Watch for price to hold support at 12EMA for confirmation.
Momentum RSI (10 close) - RSI has broken through and is now finding support above the midline. Watch for RSI to hold the support level to maintain bullish momentum. A break through the downtrend resistance channel will be added confirmation of strong bullish momentum.
Support & Resistance – The support level is defined by the price action on 3/9, 3/10, and 3/12. R1 is defined by the price action on 2/24, 2/25, 3/1, and 3/2. R2 is defined by the price action on 2/16, 2/17, and 2/19.
Trend Line – The uptrend support channel is defined by the close on 10/30 and the low on 3/5.
I welcome any critiques, comments, or questions, thank you for looking!
This idea is for discussion purposes only and is not trading advice.
Note
Price tested R1 twice this week and was rejected both times, after the second rejection price continued to the downside breaking through and closing below the previous support area. RSI (10 close) failed to hold support at the midline. 12EMA failed to hold up price but has not crossed the 50EMA to the downside, keeping the daily uptrend valid. Possible IHS reversal pattern forming on the daily chart, as we see large buying volume at right shoulder support. The larger volume is also attributed to a quadruple witching day.
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