Crossing this small losange area will have us choose between two outcomes:
Upper red oblique links previous tops, which were typical bull traps.
Lower red oblique links a range of lower tops that happens to parallel the others.
Cyan lines are key test levels.
Thick red lines below highlight a massive bearish hidden divergence that will come into play should we break to the downside.
- Breaking the red line, breaking the main downtrend setup from December would confirm the bullish momentum re-acquired in the last two weeks.
- On the other hand breaking the purple line, would break the two-week recovery uptrend and may open a new wave of downside.
Upper red oblique links previous tops, which were typical bull traps.
Lower red oblique links a range of lower tops that happens to parallel the others.
Cyan lines are key test levels.
Thick red lines below highlight a massive bearish hidden divergence that will come into play should we break to the downside.