The bulls have not yet managed to gain a foothold above the volume level of $62,987. For the second day, the price closes daily candles in a narrow range between this level and the 0.382 Fibonacci level (rate $62,430).
Pros for bulls and prospects for continued growth:
- the Fibonacci level of 0.382 is maintained (rate $62,430),
- the price remains above the downward trend since June 7,
- the price remains above the local upward trend support from the local loy on June 24,
- on the daily TF, the ascending structure of the candles remains, and if it continues, growth can be expected until July 7-8.
Of the minuses for bulls:
- the gap on CME $60,420-$62,080 remains unclosed, an expressive “magnet”,
- yesterday's daily candle closed with a bearish shadow on top,
- the price is still in a local correction, which was warned about in yesterday’s review, analyzing the four-hour timeframe. A descending structure has emerged in this TF, although there are attempts to break it. The structure can be completely broken only by keeping the RSI of this support TF at 50 and fixing the price above the volume level of $62,987 in the coming days.
While the price is above the trend since June 24 (currently at $61,388), continued growth is definitely a priority, albeit through a local decline. The MACD on the daily TF today may form a bullish crossing of the signal line and the histogram moving into the green zone. BUT it is important to wait until the day's battle closes.
In general, a correction without consolidation below the volume level of $61,231 is acceptable for further growth. But in case of a decline there today, it is important to close the daily candle with the bullish shadow from below to prevent the Evening Star reversal pattern.
Let us recall the thesis from yesterday's review:
“Now the minimum goal for the bulls is to stay above the downward trend since June 7 and above the EMA 50 of the four-hour TF. An important combo of supports. An excellent signal now would be a break of the corrective signal on the four-hour time frame and a breakdown of the volume level of $64,120 and EMA 50 of this time frame.”
The support combo is being held, the EMA 50 of the four-hour time frame is being tested by the current candle. And now it lies at the 0.382 Fibonacci level (rate $62,430). In case of a breakdown, the next significant support is precisely the upward trend since June 24th. And then - the volume level is $61,231.
With the strength of buyers and a breakdown of the volume level of $62,987, the chart may show rapid growth to the volume level of $64,120 and higher. BUT any growth without breaking through the EMA of the 50 day TF (currently $65,000) is only a rebound, not yet a reversal.
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