The price is forming a very shoddy cup and handle formation. If the price respects the patterns and moves in accordance with the handle, we could see a retracement to the .618 fib level before a potential reversal, and extension to the .382 Fib line at the ~260 price level.
At first glance, indicators look very overbought which could indicate the 224 price support will not hold.
However, on closer examination of smaller time frames, we can see strong bullish divergences taking place on the Stochastic RSI, and the MACD on some of the smaller time frames due to it being less sensitive. A break of the support line would also begin the formation of a tight falling wedge. All of this leads me to believe the cup and handle formation should see continuation upon pattern completion.
At first glance, indicators look very overbought which could indicate the 224 price support will not hold.
However, on closer examination of smaller time frames, we can see strong bullish divergences taking place on the Stochastic RSI, and the MACD on some of the smaller time frames due to it being less sensitive. A break of the support line would also begin the formation of a tight falling wedge. All of this leads me to believe the cup and handle formation should see continuation upon pattern completion.
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