/vt/ - Virtual Youtubers

Looking closer at the latest price action on the hourly timeframe, we can see that the price has retested both the sloped support mentioned above and the hourly 21 EMA, and was rejected hard out of that structure with a big engulfing bearish candle (the latest big red drop).

The price is now in a neutral pattern which occurs very frequently following a breakout of a major structure. If it can recover in the next hours / days and close back inside the falling wedge, it could be the first step toward a major recovery. It would then need to close above the major sloped resistance (the top-most white line) in the following days to signal the start of a potential rally, which is what this kind of pattern often results in. But such a breakout would likely be preceded by a few more bounces up and down within that wedge.

However if the current support breaks (the little white line below the price) and today's low was taken out, one could be tempted to enter a short position as this would likely cement this pattern as a continuation to the downside. The main danger to keep on eye on in this case would be a bounce off a parallel support to the sloped resistance (which I haven't drawn on this picture for the sake of clarity but can very much be in the cards as the swing lows from Jan 30th and Feb 27th seem to be forming a channel support).

In any case I personally wouldn't short this thing either as it's currently pretty risky either way. The safer play would be to wait for confirmation of a recovery, but that could take a long while.

Thanks for coming to my free introduction to TA.