We've had a strong bounce off the demand area at $12.98 (0), with a weekly engulfing candle marking the bottom. This is a great indicator of a potential reversal.
Taking in count that the downtrend structure is a falling wedge, we can expect a retest of the upper trendline at $28.68 (1) followed by a price drop back down to the demand zone at $16.03 (2).
After the first impulse (1), we can expect to see what could be the formation of a W pattern, indicating a strong signal for a reversal. If we're right on this theory, we can expect a breakout to the upside, reaching the next price target at $34.57 (3) before having a brief retracement to $27.46 (4).
Finally we can expect the third wave of the newly formed uptrend to reach our third price target $46.26 (5), where strong resistance will be met due to this area being the a key Fibonacci level on the weekly chart.
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Take profit levels {
#1 - $28.68
#2 - $34.57
#3 - $46.26
}
Potential buying levels {
#1 - < $16.03
#2 - < $27.46
}
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Taking in count that the downtrend structure is a falling wedge, we can expect a retest of the upper trendline at $28.68 (1) followed by a price drop back down to the demand zone at $16.03 (2).
After the first impulse (1), we can expect to see what could be the formation of a W pattern, indicating a strong signal for a reversal. If we're right on this theory, we can expect a breakout to the upside, reaching the next price target at $34.57 (3) before having a brief retracement to $27.46 (4).
Finally we can expect the third wave of the newly formed uptrend to reach our third price target $46.26 (5), where strong resistance will be met due to this area being the a key Fibonacci level on the weekly chart.
===================================================================
Take profit levels {
#1 - $28.68
#2 - $34.57
#3 - $46.26
}
Potential buying levels {
#1 - < $16.03
#2 - < $27.46
}
Drop a like if you've found this idea useful.