Bearish Structure Still Dominates Price Action
The dominant pattern remains a declining structure, with the potential for a lower swing high to be established from Thursday’s price action. A break back below the 20-day moving average, now at $4,697, will trigger on a drop below Thursday’s higher daily low of $4,685, which takes the form of an inverted hammer candlestick.
That would suggest that the larger bearish pattern is progressing. A new lower swing high was established in April, which was the top of a rising wedge formation. That bearish pattern triggered on April 21 and it was followed by a higher swing low at $4,501 and the completion of a 50% retracement of the previous advance, reinforcing the broader corrective phase still in play despite short-term rebounds.
