It
looks like the last three bottoms on the D1 chart have
formed a bullish resistance, which is closing a triangle
with the purple bearish trend line from the end of
December. It is too early to talk about a break in the
triangle so, the movement of the price inside its frames
would be the topic of our analysis. The upper level of
the triangle looks like the stronger one, because it has
been tested six times, while the lower level of the
triangle is tested only three times. Also, we should not
forget that the last interaction and bounce of the price
from the lower level of the triangle was created by
means of a Double Bottom formation, which was an
indication for the change in the direction. Since the
price started a strong bullish movement after the last
interaction with the lower level of the triangle, we
expect the price to return to the purple bearish trend
(the upper level of the triangle). The price could do
this with breaking through the green resistance or with
testing the green resistance and the purple bearish
trend at one. This could be done in the orange circle,
which indicates the interaction of the two
levels.
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