Falling Wedge Hints at Momentum Shift
Price has been coiling in a downward sloping consolidation recently that takes the form of a bullish falling wedge. As the pattern develops, energy typically builds until a decisive breakout occurs, at which point bullish momentum often strengthens noticeably. Friday’s advance established a higher swing low, which reflects improving underlying demand and reinforcing the developing bullish reversal theme introduced earlier.
Upside Levels to Watch
There are two initial upside targets following a confirmed reclaim of the 50-day average. Initially, there is an area of confluence from $4,774 to approximately $4,805, with the top level coming from the 100-day moving average. Although a rally above the lower trend high that begins the range will signal a reversal of the short downtrend, a more significant bullish recovery would be indicated above the lower swing high of $4,891, which represents a more important resistance level within the broader bearish trend structure.
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