IS A CORRECTION IMMINENT, OR ARE WE SETTING THE STAGE FOR ANOTHER RALLY?
The price action continues to follow an inclining channel pattern, delineated by the P/Q boundaries. Presently, it is approaching the pattern's upper limit.
A bearish divergence has been observed, serving as a preliminary indicator of an imminent correction. Historical analysis shows that following a bearish divergence, corrections of 5% to 10% in price materialise only 15% of the time.
However, two scenarios can unfold:
Scenario 1: The price action can develop into a full-blown correction back to its 200-day simple moving average (where it might find some support) and then a final leg down to 4 550 (the lower range of the inclining channel pattern, which is also close to its 38.2% Fibonacci retracement level.
Scenario 2: The price action could undergo a shallow correction to 4 900 before making another attempt to reach 5 100. This movement may occur within a defined trading range, adhering to the principles of range-bound trading.
At this point, forecasting a precise price trajectory becomes challenging.
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