Consolidation broke downwards after it broke the channel upwards
This is a tricky one.
Big question:
Is it retesting the channel that was broken OR it was manipulating the top to grab liquidity to the downside???
My take
Due to the consolidation being after a strong rally, and just above strong resistance zones, I think this was a big distribution for buyers to sell they profits.
But I am still not sure if there will be sellers actively stepping in or not.
Lower timeframes
To see witch probability is the most likely one, we will have to look at the lower timeframes.
2 scenarios:
^^ consolidation break in detail
Big question:
Is it retesting the channel that was broken OR it was manipulating the top to grab liquidity to the downside???
- If it's the former, it will continue it's longer term trend to the upside.
- If it's the latter, it will continue it's recent rangy behaviour.
My take
Due to the consolidation being after a strong rally, and just above strong resistance zones, I think this was a big distribution for buyers to sell they profits.
But I am still not sure if there will be sellers actively stepping in or not.
Lower timeframes
To see witch probability is the most likely one, we will have to look at the lower timeframes.
2 scenarios:
- If we see an aggressive rejection upwards, price will likely continue to the upside.
- If we see a slow rising price action to retest the consolidation, price will likely continue downwards.