UPDATE FCXSo we got the reject at the resistance that I indicated in my previous analysis.
Now we have to be patient and wait for a clear setup for entry.
Short term behaviour can be a quick retest of the small resistance just up ahead and then continuation of the downward trend (orange).
Or back up to start some sort of top formation (like a head and shoulders, double top, rising wedge, etc).
What we need to look for is 2 things:
- Arrival at a significant level of support.
- Signs of reversal at this support like; bullish divergence, engulfing candles, large wicks, big volume on bounce, falling wedge, inverted head and shoulder, etc.
The 3 supports to look out for:
1. The area around 14.00 marked with the first green circle. From a horizontal support perspective this is a very strong area (see W chart, not shown here). Also is the 0.618 fib of the latest impulse (blue fib lines). So very much an area to look at!
2. Area around 11.00-11.50. There is a confluence of things going on there: The 0.5 fib, strong horizontal support and a possible retest of the previously broken downward trendline (blue).
3. Area around 9.00-9.5. Seems unlikely, but I've marked it nontheless as it represents the 0.618 fib and another horizontal support.
So let's keep a close eye on the price action once arriving at these support levels. Getting close to no. 1 already, which could very well be the turning point already.
