Market Review
RLC is currently consolidating at an important horizontal support level within a descending triangle on the daily timeframe. This support zone previously acted as a demand zone, preventing the price from falling further.
Parsing the graph
The chart shows a descending triangle, usually associated with bearish trends. The price is testing the horizontal support level at the base of the triangle. The presence of an unfilled rising candlestick imbalance suggests that price may rebound from this zone.
Possible developments based on this analysis
Given the current technical picture, there is a possibility of a rebound from the demand zone caused by an upward candle imbalance. In case of a successful rebound, the price may tend to test the upper border of the triangle. However, if the price fails to hold at this support level, the breakout could lead to further declines, targeting lower support levels.
Final Thoughts
RLC is at a critical level and its price action is closely tied to a key support level within the descending triangle. Traders should watch this area closely as a bounce could offer short-term upside potential, while a breakout could signal further declines.
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