1. Price Levels:
Current Price: $3,236.68 (marked in red).
Resistance Zone: Around $3,240 (highlighted in beige at the top).
Support Zone: Around $3,220 (highlighted in beige at the bottom).
Target: Marked with a yellow box and red target icon at $3,220.
1. Price Action & Structure:
Current Price: $3,236.68, sitting just below the midpoint of the highlighted resistance zone.
Market Structure: The chart shows range-bound price action between a resistance area ($3,220), forming a horizontal channel.
The yellow box highlights a recent consolidation area where price is stalling, indicating indecision or a potential reversal setup.
2. Key Zones:
Resistance Zone (Top Beige Box):
Price tested this zone twice, both times forming bearish candles (orange circles), indicating strong selling pressure.
Support Zone (Bottom Beige Box):
Repeated bounces from this zone (also marked with orange circles) suggest it’s a strong demand level.
However, multiple retests can weaken the zone over time.
3. Candlestick Signals:
A bearish engulfing pattern from the top of the range led to a significant drop earlier in the session (highlighted in red and gray vertical box).
Currently, the market is printing small-bodied candles in the yellow box, signaling a pause or loss of momentum—often a precursor to a breakout.
4. Breakdown Expectation:
The blue arrow suggests a forecasted downward move toward the support level at $3,220.
If price breaks below the yellow consolidation zone, momentum could increase toward the target.
This bearish expectation aligns with the chartist’s view: range rejection + resistance hold + weakening momentum = downside move.
5. Target & Risk:
Target: $3,220, clearly marked with a target icon.