Daily Chart breakout
What have we seen?
Well using an Inverse Fibonacci from the candle high formation at 1.348X zone, where a formation pattern previously completed. This now becomes the (1) on the Fibonacci. Price formed a "0" at 0.912 (however whilst the market establishes this point - it is impossible to determine the true bottom while price makes lower lows. However, what can be done, is where price tests a downward trend line smaller scale Fibonacci or downward channel patterns assist in area of adding sells or taking of risk measured sells for short scale profit zoning in the meantime while a original position is in play.
Long position taken
Why?
Well the weekly showed a strong change of hands based upon the completion of the daily pattern which equated to 0.66X and pivoted directly above the 0.6645 -0.618 inverse extension zone.
The weekly chart also provides clarity of an upper zone, where price had previously reverted in which the imbalance had a bullish engulfing weekly candle which indicated the next imbalance was prepared to breakout from the zone.
To further support this argument - three consecutive weekly candles provided a clear buying imbalance confirmation. Keeping this as a reference for future price action where price will return to retest the imbalance . In this case wick.
Three day update
Monthly Update
Price is making higher highs on the monthly.
Though price has broken the "trendline test", the failure to close out showed the highly probable imbalance testing on the lower timeframes - weekly and below e.g. four day, three day and daily.
Trading range upcoming
Expected lower daily and upper imbalances applied for a possible trading range to occur whereby;
price will fluctuate and look to breakthrough the $1.00 mark before climbing higher.
For the Bullish imbalance to break, price will test first the lower imbalance to see if the 0.236% Fibonacci level holds.
Expect price to create lows, so long as these lows are higher lows. Confirmation rules are applied.
Refer back to the weekly to test price closes upon the weekly alignment for confirm rules.
