I really don't know what happens next, so I can't give an answer. I'll just share what I see.
The yellow rectangles show areas that I think give will give important clues when/if price gets into those locations.
Scenarios are:
1. It's looking for resistance between where price is at now and all the way up to the highs, marked by the white line. If price breaks through the white line at the highs, it should continue to go up.
2. It could be forming a flag with the top at the underside of the breakout area and the lower channel going up forming support for the flag. Generally, a flag will break in the direction it was entered from, so it would break down, but I think that really depends on a few other factors. Was this news or the market open that began the drop? If so then maybe the bottom is forming and price will break through the highs and continue to trend up.
3. The most obvious direction for price, if you don't try to over think it too much
, is that price will move lower after testing and finding resistance. Of course, that depends on whether or not it does find resistance.And if I were trading this, I'd (hopefully) be waiting for it to pick a direction of either more down or more up and trade in that direction.
Just my thoughts.
