Price is testing a longer term sloping channel from below
right at the lower Kumo Cloud resistance and in proximity
of Yearly S2/Monthly PP confluence resistance.
Even if price closed above the confluence resistance last
week, the additional resistance may give pause in upward
action. A strong candle to the upside closing inside the Kumocloud
will expose previous highs and potentially the upper Kumocloud.
A daily close below the cloud will give a bearish Kumocloud
Breakout sell signal.
Note that Retail Sentiment is still net short which points to further
gains, but with a sharp move down this can quickly flip.
right at the lower Kumo Cloud resistance and in proximity
of Yearly S2/Monthly PP confluence resistance.
Even if price closed above the confluence resistance last
week, the additional resistance may give pause in upward
action. A strong candle to the upside closing inside the Kumocloud
will expose previous highs and potentially the upper Kumocloud.
A daily close below the cloud will give a bearish Kumocloud
Breakout sell signal.
Note that Retail Sentiment is still net short which points to further
gains, but with a sharp move down this can quickly flip.