A couple days ago I did a post identifying potential support levels for the move lower.
On of those potential levels was the 48,100 area, which price has bounced off of at the moment. We still need follow through though.
Reversal at Potential Support
The 48,100 level was based off a consolidation level we saw back in May. It was after price had tested and bounced off the 44,500 level.
This level only represented a consolidation, price bouncing off it had now confirmed it as a support level.
The green candle we are seeing on today's daily candle follow's yesterday's reversal candle that is highlighted.
It seems that this reversal is working out to the upside after the reversal two days earlier did not.
That is the beauty of candlestick charting. It is all probabilities in the end. This is why you need to make sure risk-reward is favorable, at least when it comes to trading.
For long-term investing. Well, buy on dips is the easiest path in my opinion.
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