Break out of the bullish trend line - signalling a trend reversal, which is a critical event in the analysis of market movements. This breakout indicates that the prevailing bullish sentiment is losing strength, and a shift toward bearish momentum is becoming increasingly evident. Traders and investors should pay close attention to the implications of this shift, as it could lead to significant changes in market dynamics.
SELL ZONE 2918-2924 - This price range, which was previously identified as a robust support area, has now transitioned into a sell zone. This transformation is significant, as it suggests that sellers are now gaining control over the market. Traders looking to capitalize on this shift should consider this area as an ideal selling point, where the likelihood of price rejection is high. The psychological impact of this zone cannot be underestimated, as many market participants will be watching for signs of weakness in this previously supportive range.
BEARISH MOMENTUM - The current price action shows that there is a notable failure to achieve any significant recovery following the breakout. This inability to rebound indicates that sellers are firmly in charge, and further downside movement is anticipated. The lack of buying interest at higher levels reinforces the bearish outlook, suggesting that traders should prepare for continued declines as the market seeks to find new support levels.
TARGETS 2871.60 THEN 2840.64 - These target levels represent potential areas where the price may find support as it continues to decline. The first target at 2871.60 is crucial, as it could serve as a bounce point for buyers looking to enter the market at a lower price. If the price breaks through this level, the next target at 2840.64 will come into play, which may further exacerbate the bearish trend. Monitoring these targets will be essential for traders looking to make informed decisions based on market movements.
If price rejects the selling zone, expect further downside momentum. A rejection at this critical level would confirm the strength of the bearish trend, leading to increased selling pressure and potentially accelerating the downward movement. Traders should remain vigilant and ready to adjust their strategies based on how the price interacts with these key levels.
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