In the daily chart we see that the current price level has been considered to be fair for a long time. Here the highest level has been traded and we are in the area of temporary balance. Nobody wants to sell but for purchases the situation also isn’t favourable. As we see in the chart, vertical volumes decrease and it usually happens before a strong rise.
Having a look at H4 chart and applying the same market profile, we will get a more clear picture which helps to understands the reasons of such a long consolidation.
On the whole, sells have ceased, but we are still under the red candlesticks’ pressure. The price has approached the lower trend’s border and, formally, it is a buy signal, but in the current situation I would wait for more reliable signals.
In the hourly chart we see that a the false outbreak of the local downtrend ended in three-hour sale which pushed the price to the lower border of the ascending channel. In case of its outbreak, the price will go down to the range of 265-275 with a stop at 280.
I wish you successful trading!
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The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.