1. Resistance Area Weakness
The resistance zone is marked as a strong rejection area, but there’s a possibility that instead of reversing, price could break through. A break above could indicate bullish momentum rather than a reversal.
Instead of assuming a rejection, watch for liquidity grabs above the weak high.
2. Support Area Strength Overestimation
The support zone is considered a strong level for reversal, but if the market is in a strong bearish trend, the support may fail.
Instead of assuming a bounce, consider the possibility of a breakout below support, leading to a further drop
3. Market Structure Bias
The analysis focuses on a bearish move from the resistance area, but the recent rally before resistance suggests that buyers were strong.
A “Change of Character” (ChoCH) may not always lead to a reversal; sometimes it can be a trap before continuing higher.
4. Alternative Scenarios
Instead of the expected drop, price could range between resistance and support before a bigger breakout.
Liquidity could be built up near the resistance zone, causing a fakeout before an actual move.