This last price rebound confirms it: Descending Channel
Channels provide the ability to determine how likely your trade is to be successful. This is done through something known as confirmations. Confirmations represent the number of times the price has rebounded from the top or bottom of the channel. These are the important confirmation levels to remember:
1-2: Weak channel (not tradeable)
3-4: Adequate channel (tradeable)
5-6: Strong channel (reliable)
6+: Very strong channel (more reliable)
1-2: Weak channel (not tradeable)
3-4: Adequate channel (tradeable)
5-6: Strong channel (reliable)
6+: Very strong channel (more reliable)
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