Breakout Triggers and First Resistance Cluster

A bullish breakout of the downtrend line and 20-day moving average will have also been triggered by then. That would leave resistance near the 50-day moving average at $4,634. Once reclaimed, an initial bullish trend reversal will be confirmed. The lower swing high at $4,774 and 100-day moving average at $4,802 target zone follows.

Weekly Structure Points to Larger Move

The weekly chart may clarify the recent low volatility environment. Last week completed a potentially bullish hammer candlestick pattern with a high of $4,595. A decisive breakout above that level would signal a bullish reversal on the larger time frame to go along with a trendline break confirmation.

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