Watching for pullback

Aug 2, 2021

Good morning,

So, 42K target has been hit and market turns to expected retracement. Now, as upside channel has been broken on 1H chart and price has formed first upside reversal swing after long-term flat action, we expect more or less deep retracement. Here, on 1H chart we're watching for H&S pattern and 36.5-37K area as potential target. This is rather strong 4H K-support area, and upward action could continue right from here.

It means we have two potential setups. Once H&S will be formed - this is setup for intraday bears, while around 36-37K area we start searching chances for long entry and upward continuation.