Hi all, below are a couple of charts- a daily and a weekly with some support levels and some commentary. Still learning and just my thoughts, and apologies for the long post - I've added some "weekend reading" explanations I hope some find of interest - and feel free to add comments or different perspective.
Short version: next support levels $1.485 and next one below at $1.275.
Long version: I accidently sold on Tuesday at $1.585 so am now looking for another entry (well not accidently- I stuffed up my trailing stop which set it too tight).. But anyway looking at potential areas to look for good entry signals if and when price pulls back again. The chart overall is not telling me there are is any major weakness- no selling event etc- however it appears to me to be thinking about the next consolidation period of some sort- either some sideways action or another pullback perhaps.
Why? Price could very well keep grinding up as it has over the last week. However, the last bar on the weekly chart closes well off the high on ultra high volume, suggesting a fair bit of supply - selling pressure - which may need to be worked through before another solid move up. And price has spent most of last week in "overbought" territory and while it could spend a while longer up there it typically means a breather is imminent. And this week an upwards slanting flag type of pattern has emerged on the daily, which is usually considered a "less healthy" type of consolidation than the typical downwards sloping "bull flag". A bull flag typically emerges when there are more traders interested in booking profits than taking fresh long positions, causing the market to pull back temporarily against the trend. This offers the opportunity for new longs to enter at temporarily discounted prices and eventually price resumes the upward trend- which is why they are seen as continuation patterns. However an up sloping flag hinders the ability of new participants to join in at temporarily discounted pricing, demand can start to fall away and so is generally seen as a sign of potential trend exhaustion.
So to the levels. Over the last 6 months, when there has been a pullback price has pretty consistantly come back to test the last pivot high, with price either bouncing off this level or trampolining back up after briefly breaking through. The most recent pivot high is at $1.485, and together with a little gap and an ultra high volume level makes a support "zone" of about $1.465 to $1.485. Currently price is not very far above this level, but you'll notice on its previous journey up to make the $1.485 high, price paused for a week in mid-May to consolidate and test the prior pivot high before resuming the move up. To me, a similar movement to that appears most likely, with price turning back to this $1.485 zone before resuming the move up.
If, however, price were to move strongly below this then price should be strongly defended at $1.275. But with the increased awareness and profile of 5GN it would not surprise to see demand increase and turn price around above this level as new traders jump in early anticipating this support level.
For anyone interested in reading more about flags and the supply vs demand dynamics behind them- here's a couple of good links :
https://dailypriceaction.com/free-forex-trading-lessons/sloping-flag-pattern/ and
https://www.tradingwithrayner.com/academy/chart-patterns/flag-pattern/Good luck everyone.
(20min delay)