Technical Overview:
Pattern Formation:
The chart suggests a double bottom breakdown setup. A double bottom is typically a bullish reversal pattern, but if the price breaks below the support (previous lows), it invalidates the bullish expectation and turns into a bearish breakdown scenario.
Breakdown Confirmation:
The neckline (previous low) is crucial in determining whether the pattern will hold or break.
If the price sustains below this support, a downward move is likely to continue.
Target Calculation:
The expected target is derived by measuring the distance between the swing high and the double bottom support, then projecting it downward from the breakdown point.
According to the chart, this calculation aligns with a target near $60.
Volume Analysis:
Increased volume during the breakdown would provide stronger confirmation that the pattern is valid. If volume is low, the breakdown might be a false signal, leading to a potential reversal.
Key Levels to Watch:
Breakdown Level: The double bottom's support level.
Resistance Area: The recent swing high.
Target Zone: Around $59 (measured move projection).
Invalidation Point: A sustained move above the previous resistance zone would invalidate the bearish outlook.
Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Trading involves substantial risk, and past performance is not indicative of future results. Traders should conduct their own research and consult with a financial professional before making any trading decisions. Market conditions can change, and risk management is essential when implementing any trade strategy.
Pattern Formation:
The chart suggests a double bottom breakdown setup. A double bottom is typically a bullish reversal pattern, but if the price breaks below the support (previous lows), it invalidates the bullish expectation and turns into a bearish breakdown scenario.
Breakdown Confirmation:
The neckline (previous low) is crucial in determining whether the pattern will hold or break.
If the price sustains below this support, a downward move is likely to continue.
Target Calculation:
The expected target is derived by measuring the distance between the swing high and the double bottom support, then projecting it downward from the breakdown point.
According to the chart, this calculation aligns with a target near $60.
Volume Analysis:
Increased volume during the breakdown would provide stronger confirmation that the pattern is valid. If volume is low, the breakdown might be a false signal, leading to a potential reversal.
Key Levels to Watch:
Breakdown Level: The double bottom's support level.
Resistance Area: The recent swing high.
Target Zone: Around $59 (measured move projection).
Invalidation Point: A sustained move above the previous resistance zone would invalidate the bearish outlook.
Disclaimer:
This analysis is for educational purposes only and does not constitute financial advice. Trading involves substantial risk, and past performance is not indicative of future results. Traders should conduct their own research and consult with a financial professional before making any trading decisions. Market conditions can change, and risk management is essential when implementing any trade strategy.
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.
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.