After forming a high and a SW H, price created a bearish CH and subsequently broke the short-term trendline, confirming a shift in the short-term structure. Price is currently in the middle of a drop, and we are now waiting for it to reach an important support area.
We have identified a strong support zone on the chart, and this is the area where we are looking for potential buy/long positions. The reaction from this zone will be important, as we want to see how price behaves once it reaches this level before considering any long setup.
The potential targets are clearly marked on the chart. If price reaches the first target, consider taking partial profits and securing some of the position while allowing the remaining position to run toward the higher targets.
As long as the support zone holds and the invalidation level remains intact, the bullish reaction from this area remains our preferred scenario.
However, a daily candle close below the invalidation level would invalidate this analysis and cancel the long setup.
