Usually when a important support or resistance get broken, there is one touch to that level, and if the intention of the movement is to go in the same direction as before then it will use that level to push itself higher.
You can see in the chart that 4300 got hit after it got broken.
why it did that?
To generate momentum to go more up to break the red circle. Its making a notch through it, and it has also broken the dotted black circle where the boundaries of its up move was.
Once this motion gets above the red circle and in between the upper trendline in blue and the red circle, then the bear game is over.
It will work its butts off try to use the red circle as support and make higher highs. Personally I dont think there is the slightest chance of a reversal happening that will go to 4300 some time soon. At least the 4700 should be hit before any reversals
You can see in the chart that 4300 got hit after it got broken.
why it did that?
To generate momentum to go more up to break the red circle. Its making a notch through it, and it has also broken the dotted black circle where the boundaries of its up move was.
Once this motion gets above the red circle and in between the upper trendline in blue and the red circle, then the bear game is over.
It will work its butts off try to use the red circle as support and make higher highs. Personally I dont think there is the slightest chance of a reversal happening that will go to 4300 some time soon. At least the 4700 should be hit before any reversals
DislikedHi Kambooj,
4550 I will second. In this area I have a fat supply zone, the upper pitchfork-line and several fib confluences as well as a Murrey math 8/8 level on 4h with p=32 at 4587, +1/8 level on 1h chart at 4556Ignored
Attached Image (click to enlarge)
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