$ICP Trading Setup:
ICP has been consolidating sideways recently, forming an intriguing pattern on smaller timeframes. On the larger timeframe, a potential 5-wave move from the September 2023 low to the March high suggests room for further upside continuation. However, the current rally from the July low is only a 3-wave move, indicating it's not strong enough to be considered a continuation of an impulse wave. The wave count remains ambiguous, with various possible interpretations, but the July low is crucial for maintaining the current pattern. A diagonal pattern involving a series of ABC waves is also a possibility, which emphasizes the importance of the July low. The $4.37 level, marking a 78.6% retracement of the rally from September to March, is a critical point. A break below this level would be bearish, especially considering two key trend lines on the chart, with the red trend line being more significant due to its four touch points. A break above the upper boundary of the channel could lead to a breach of this red trend line, forcing the market to make a decisive move. An upside breakout is a potential scenario to watch for.
✅ Trading Setup: ( Short 2x - 10x )
BP: 7.30 to 7.01
TP: 4.60 to 4.30