Trading Range formed between strong horizontal support and resistance zone. The price tested several times both zones and was not able to break any of them.
We can see that the pressure is growing, because volumes are declining, but which side the price will choose to break.
1 option Upside (least probability to happen) - This option has least probability to happen because resistances are becoming stronger and we see that 19 MA is nearing to level of resistance zone. Plus the process does not look like the accumulation at all, which make the option of Upside break is even less probable.
2 Option Downside (most probability to happen) - this option has most probability to happen, because of 2 factors.
1 factor is the resistances are more effective during a downtrend on itself and in this situation we definitely see they are becoming stronger.
2 Factor is the price is floating along 20 MA on daily and historically this led price to a big decline. One time right to the bottom.
One more factor would be that there is no a start platform for price to grow, because we do not see any signs of accumulation.
More interesting question will this decline break support zone this time?
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Remember this analysis is not 100% accurate. No single analysis is. To make a decision follow your own thoughts.
The information given is not a Financial Advise.
We can see that the pressure is growing, because volumes are declining, but which side the price will choose to break.
1 option Upside (least probability to happen) - This option has least probability to happen because resistances are becoming stronger and we see that 19 MA is nearing to level of resistance zone. Plus the process does not look like the accumulation at all, which make the option of Upside break is even less probable.
2 Option Downside (most probability to happen) - this option has most probability to happen, because of 2 factors.
1 factor is the resistances are more effective during a downtrend on itself and in this situation we definitely see they are becoming stronger.
2 Factor is the price is floating along 20 MA on daily and historically this led price to a big decline. One time right to the bottom.
One more factor would be that there is no a start platform for price to grow, because we do not see any signs of accumulation.
More interesting question will this decline break support zone this time?
Thank you for reading this idea! Hope it's been useful to you and some of us will turn it into profitable.
Please hit the Like button if you consider this idea helpful and follow us for supporting.
Remember this analysis is not 100% accurate. No single analysis is. To make a decision follow your own thoughts.
The information given is not a Financial Advise.
