– The trend line is the monthly downtrend that was broken at the end of July, 2020. Price moved nearly 750 pips from that point.
– Price reached the monthly resistance and has since corrected back from that zone.
– Moving averages have crossed signalling trend change.
– Price has created a new lower high last week and a new low earlier this week also signalling trend change.
– Price has retraced back to retest the previous lows at the 50% – 61.8% retracement zone, which also had significant reactions twice back in December.
– The retest is also testing the neckline of a sloppy head and shoulders pattern that did break out for a nice leg down.
– Target will be in the 50% – 61.8% retracement zone from the leg up off the monthly trend line break to the monthly resistance zone .