Price is currently testing the top of the upper boundary of a symmetrical triangle, that has been forming for close to two months, with bullish divergence at the lows.
However, firstly, price is yet to confirm the breakout and also concerning to me, is that given the size and time duration of the decline, it would seem more likely that a far greater amount of time is required for price to form a significant base and confirm a lasting, major low is in place.
The current symmetrical triangle gives me little confidence of a significant low, even if it does confirm a breakout today. I would urge caution in chasing this to the upside. I would need to see a series of higher highs and higher lows before I could become more constructive.
A failure here and a subsequent move below the lower boundary would suggest another significant decline was underway.
