The market is currently showing signs of entering a Wave 5 exhaustion phase, indicating a potential shift in momentum. Alongside this, there is a notable A, BC Pattern forming, suggesting a structured price movement. As we delve deeper into this pattern, it becomes evident that the B wave is in the process of setting up. This phase is characterized by a double top pattern, a common technical indicator signalling a potential reversal in the price trend.
Given the formation of the double top pattern, it is reasonable to anticipate a downward movement in the price either within the upcoming trading session or over the course of the next few days. This pattern often triggers selling pressure as traders and investors react to the perceived resistance level that the double top represents. Consequently, there may be a bearish sentiment prevailing in the market as participants adjust their positions in response to the evolving price action.
It is essential for market participants to closely monitor the price behaviour in the coming sessions to validate the pattern's development and confirm the potential price movement. By staying vigilant and analysing the market dynamics, traders can position themselves strategically to capitalize on the anticipated price action resulting from the double top pattern formation.
Chris
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