Recent three weeks price action indicating a near-term sell-off could trigger in the coming days. Last week trading behaviour remains in sideways and tight trading range since Jan 25th high 70.78$. As we pointed in our last week’s weekly article, the underlying indicators remain bearish on the daily chart.
Weekly support finds at 66.00$ (50.0% fib reaction, 61.00-70.78 rally) below this could retrace further to 64.50 earlier breakout level. Noting that the 50MA finds at 66.00$. Short term basis, 61$ support is now key and should main the current uptrend.
Weekly range: 66.00-70.80$
On the four-hour chart, the price action indicating a bearish H&S pattern, but remains above the neckline. A move below the neckline needed to confirm the near-term retracement to 67.00$ and 66.00$. Below 66.90$ the degree of the retracement will accelerate to 50.0% and 61.8% fib reaction (61.00-70.80$ rally)
An alternative scenario, A daily close above 70.80$ could open to 71.50$ and 73.00$.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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