📝 Chart Structure Overview
The chart previously formed a rising wedge — a classic bearish reversal pattern — which broke down aggressively.
The breakdown has now led to a steep decline, bringing price back to the major support zone between 17,000 – 17,700, which held strong multiple times in the past (highlighted in purple).
📉 Current Price Action
Current price: 17,618.3
Price is hovering just above a key demand zone from 2023, with a small bounce visible today.
The large red candle breaking through multiple support levels suggests strong bearish momentum, but this area could act as temporary support or a bounce zone.
💹 Volume Analysis
There’s a visible spike in volume, indicating capitulation or panic selling — this can often lead to short-term relief rallies or bounces as buyers step in at support.
📊 RSI (Relative Strength Index)
RSI is 34.76, approaching oversold territory (<30), signaling potential exhaustion of the sellers.
Momentum is still bearish but could be ripe for a short-term bounce or consolidation phase.
⚠️ Key Levels
Support Zone (Demand): 17,000 – 17,700
Resistance Levels:
19,921 (previous support, now resistance)
20,532 (supply zone)
Breakdown Level: ~20,000 (former wedge support)
✅ Potential Trading Setups
1. Reversal/Bounce Play (Short-Term Bullish Idea):
Entry: Around 17,600–17,700 if price stabilizes
Target 1: 18,400
Target 2: 19,200–19,500
Stop Loss: Below 17,000
2. Bearish Continuation (If support fails):
Entry: On break below 17,000 with high volume
Target: 16,000 (next major support)
Stop Loss: Above 17,700
The chart previously formed a rising wedge — a classic bearish reversal pattern — which broke down aggressively.
The breakdown has now led to a steep decline, bringing price back to the major support zone between 17,000 – 17,700, which held strong multiple times in the past (highlighted in purple).
📉 Current Price Action
Current price: 17,618.3
Price is hovering just above a key demand zone from 2023, with a small bounce visible today.
The large red candle breaking through multiple support levels suggests strong bearish momentum, but this area could act as temporary support or a bounce zone.
💹 Volume Analysis
There’s a visible spike in volume, indicating capitulation or panic selling — this can often lead to short-term relief rallies or bounces as buyers step in at support.
📊 RSI (Relative Strength Index)
RSI is 34.76, approaching oversold territory (<30), signaling potential exhaustion of the sellers.
Momentum is still bearish but could be ripe for a short-term bounce or consolidation phase.
⚠️ Key Levels
Support Zone (Demand): 17,000 – 17,700
Resistance Levels:
19,921 (previous support, now resistance)
20,532 (supply zone)
Breakdown Level: ~20,000 (former wedge support)
✅ Potential Trading Setups
1. Reversal/Bounce Play (Short-Term Bullish Idea):
Entry: Around 17,600–17,700 if price stabilizes
Target 1: 18,400
Target 2: 19,200–19,500
Stop Loss: Below 17,000
2. Bearish Continuation (If support fails):
Entry: On break below 17,000 with high volume
Target: 16,000 (next major support)
Stop Loss: Above 17,700
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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.
Related publications
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.