The price could not break the resistance zone in spite of a strong upward movement. If buyers can’t move above 7000.00 and stay there for some time, we should be ready to see a reversal from this zone and a further downward movement. The 1st target for sellers will be the previous swing low at 3780.00 level. It is a support level now. The 2nd target for sellers should be the previous bottom at 3000.00 support.
If we look at indicators like MACD , SMI, and RSI , we will get more bullish signals than bearish . But it will mean nothing if the price stays below the resistance zone .
If the previous falling to 3780.00 was not manipulated, and it was based on fundamental reasons, the market has no reasons to move upward. Even if indicators give bullish signals, FA pushes the price to 3000.00 and below it. Any new uptrend won’t be reliable without good fundamental support, and we must take into consideration this fact.
For long term traders and investors, the current levels can be used for building long positions. For other traders, I think it is better to stay away from the market and wait for reliable signals from TA and FA.
Now the price is moving below SMA100 in the 4H chart. If the price breaks the local uptrend line, it will be a bearish signal confirming the further downward movement.