ETH, Possibility of a deeper correction There’s two harmonics, a big and strong candle in last week of Aug and also a very important level at 335 that return below it may be a sign of false breakout of the last HH it this level.
Harmonics are ABCD and Shark but they are not that strong with standard form, but price action did a reaction to them. I have my own approach to harmonics and use them beside my own price action algorithm that I’ll show you screenshots of it below.
Weekly:
On the weekly chart I have d Dw5 signal on last candle that have 3 days left to close. Candle has a long lower shadow so if we get weekly close above 335 this signal would be a weak one and the possibility of 335 acting as a support for more bullish moves increases Albeit next weeks close still maybe bearish and below this level, so we need some continuation sign to be sure. If bears stay dominant the algo suggest a support line around 287 (the yellow line) and harmonics first bearish target is not far from it. So, 255-290 would be a support and possible reversal zone. Next support is around next harmonic target and VP peak; 170-200. Reaching there may need a special situation in the markets and also may lead to heavy and quick buy pressure as we had in second week of March.
Daily:
In daily chart thing are very interesting. First on the top I had a Dw5 signal. Then another one showed up with a D4 signal on the candle when price was retesting the first yellow zone where was the confirm zone for bears. Meanwhile a 0-5 harmonic formed that lead to recent week’s bearish moves. For 3 days we I have mixed signals (consecutive Dw5 and Up5). Market hesitates to break this level for now. As you can see support lines (two green lines) are in 240-260 zone and also VP’s peak is exactly there too.
