This 4H Chart shows a potential downward move to $375. Price has just broken the neckline of the second consecutive M pattern (Mtop), thus making this next downward move more extreme than the first. Please see the first M pattern in orange with a clear white neckline that was broken with a measured move down from the breakpoint to the next pivot low where price reversed, trended upwards to start forming the move up for the second M pattern to form. The second M pattern in light blue has now formed and broken below its neckline in white, with a duplicated measured move down added from first M pattern neckline. Notice how the second measured move down coexists with a strong upsloping trend line. There is also an upsloping parallel channel that has been broken. Also, negative divergence on RSI. Lastly, notice my projected path down in white.
Trade closed: target reached
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.