Weekly bull pattern
Last week’s low point was $ 2,982 and it is part of the trend structure of higher weekly lows, and therefore a potential support area. If the current weekly Uptrend pattern has to be retained from higher weekly lows, support for the pullback should be seen in or above that price surface. Nevertheless, there is potential support slightly lower, starting with the 38.2% Fibonacci retracement level at $ 2,971.
Note that the 20-day MA (purple) is rising and that it has risen above the earlier trend of $ 2,956 today. The 20-day line represents an important potential support zone after the recovery of the line on 12 March. It is now at $ 2,959. This pullback would since then be the first test of the 20-day MA as support. Because it is also associated with other important initial price levels, there is a good chance that support will be seen.
Intraday pattern is Beerarish
Although short -term consolidation can continue to evolve for a while longer, a drop below $ 2,999 will indicate a continuation of the decline. Further insight is provided by the 1-hour intraday graph (not shown). It shows a breakdown of a head and shoulders topping pattern last week, followed by two successful resistance tests around the neckline of the pattern this week.
And there is a parallel trend channel or bear flag type pattern under the neckline. Lines for both the neckline and the bottom of the canal can be seen on the closed daily graph. That is why a dip under the low point of Tuesday $ 3.007 can offer a sign of weakness that can lead to a decrease of less than $ 2,999.
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