Is the retracement over?

23 ago

22/08/24

Today price reached it's highest point 41,814.4 after which it sold down to 40,598.6 signalling a 10H HL as a new type of low. This sell off as a new 23H LH aligned perfectly as point C on a bearish trend line where price previously signalled a 23H HH and 23H LH. Therefore it is fair to think that we are entering into a bit of a retracement before heading to new ATHs.



So what happens next?
Although price sold down to 40,598.6 signalling a 10H HL as a new type of low I do not believe that the retracement is over as the 8H and the 9H TF are without a HL signal. If the 10H is the biggest TF to signal a HL this means that all the timeframes below must have their respective low points signalled as well. Therefore my bias remains bearish until all the TFs are properly aligned.



LH and LL points define a downtrend. Price sold down 40,598.6 signalling a 10H HL as a new type of low. After which price has been buying up and currently signalling a LH on the 1H TF.

Using my fibs on the 1H TF this LH can continue bullish to 40,876.8 at the 61.8% retracement level and the MAs before resuming down to signal a new LL and possibly a 23H HL.

As long as price remains below the bearish level of resistance at 40,955.3 then the downtrend is still valid.