1. Support and Resistance Levels:
- Resistance R1: $604.8 – This level represents a key resistance. If the price manages to break above this level, there's a strong chance of further bullish continuation.
- Pivot (P): $549.7 – The current price is around this pivot level, indicating a critical zone. A decisive move above or below this level will likely determine the short-term direction.
- Support S1: $535.8 – This level is an important support. If the price falls below it, it could lead to increased selling pressure.
2. Trendlines:
- A rising trendline was recently broken, indicating a potential shift toward a short-term bearish trend. This suggests that the previous bullish momentum has weakened.
3. Volume:
- The trading volume shows a slight increase with red candles, indicating rising selling pressure. This could reinforce the idea of a downward move if the key support is broken.
4. Technical Indicators:
- DMI (Directional Movement Index): The DMI seems to show the red line (DI-) dominating over the green line (DI+), suggesting increased bearish pressure.
- MFI (Money Flow Index): The MFI is currently at 25.92, slightly above 20, indicating a possible oversold condition. However, it is not yet in an extreme oversold zone (below 20), so a rebound might be limited.
### Trade Opportunities for Tomorrow
1. Bullish Scenario:
- Long Entry: If the price breaks and holds above the pivot level at $549.7 with significant volume, a long entry could be justified. The first target would be the resistance at $566.9, followed by the R1 level at $604.8.
- Stop-Loss: Place a stop-loss just below $545.6 (immediate support level) to limit risks.
2. Bearish Scenario:
- Short Entry: If the price breaks below the support at $545.6, it could indicate a continuation of the bearish trend. In this case, a short trade could be considered with a target towards $535.8, or lower if selling pressure continues.
- Stop-Loss: Place a stop-loss just above the pivot level at $549.7 to minimize losses in case of a sudden reversal.
3. Range Trading:
- If the price remains stuck between $545.6 and $566.9, there could be opportunities for range trading by playing the bounces between these levels. This type of strategy is riskier and requires strict risk management.
### Conclusion
The market is currently at a critical point around the pivot. The direction the price takes in the next few hours could provide a clear indication of tomorrow's trend. Closely monitor price movements and associated volumes to confirm the direction before taking a position.