Weekly, daily, hourly analysis
On the daily chart, Price got rejected, firmly, at three key zones:
- The .886 Fibonacci retracement level of the swing high on January 25th, 2018 to the swing low on March 1st, 2018).
- Price rejected higher and closed below the upper trading range.
- Rejection of a lattice angle.
Gann Day Counts
– 64th up week since the all-time low, extended beyond normal pull back conditions.
– 45-day cycle, probably the most important aspect of this analysis, this cycle ends moves. Gann called it the ‘death zone’ because it ends ‘blow-off moves’.
– 7-day cycle from the most recent swing low ended at the close of Friday.
Divergences
– Consecutive bearish divergences on weekly and daily charts.
– Monthly CI is trending lower while prices have shown to move higher.
Volume
– Since the swing low in October of 2016, volume has been increasing every month before it finally topped out in February of 2018. When the volume has been rising and reaches a peak near a swing high or low, a change in trend is inevitable.
Price Action
– Firm inverted hammer on daily, forming a multi-top price zone.
– On the 4 hour chart, there is a powerful reversal signal: tweezer top.
The 1st target area is 1.38.