BNBUSDT PRICE ACTION DISCOVERY WITH A STRONG BULLISH VOLATILITY EXPANSION
BNBUSDT’s, currently is trading in a Blue-Sky Breakout with a weekly candle close coming to fruition. The close will greatly dictate the overall direction in the immediate short term, as of current, the objective is the Swing High (All Time High).
BNBUSDTWeekly Price Action Chart
Observing the chart above, we can see a clear Daily S/R level that has been a staunched resistance until a break and retest leading into the Weekly S/R Zone. The initial test of the weekly level posed a rejection, causing Price Action to oscillate between the two key Support and Resistance Levels.
A Local Higher Low Projection between these levels was established, leading Price Action to consolidate under the Key Weekly S/R Zone. Such consolidation is deemed bullish as Price Action absorbs Supply as volatility tightens. Evidently, a Bullish Engulfing candle came to fruition, breaking the S/R Zone and confirming a retest before a continuation.
As of current, a strong Bullish Volatility Expansion has occurred, leading Price Action into All-Time Highs. Being in a Blue-Sky breakout with no valid Volume Climaxes deems further upside being highly imminent as there are no valid signs of a temporary top.
Perceiving the current RSI; trading at Overbought Conditions needs to be taken into consideration. The previous Overbought Conditions at this extreme were met with a deviation back into its Bullish Control Zone. Thus it is highly probable at some stage that a deviation will occur, holding the Bullish Control Zone will then be important to maintain a Bullish Direction Bias.
To conclude, BNBUSDT remains in Price Discovery with no signs of a temporary top such as a Volume Climax Node. The All-Time Highs is now the current objective, exceeding this level will increase the probability of a further expansion. The RSI on the other hand needs to be monitored for a deviation back into the Bullish Control Zone. Holding these regions will solidify strength in the trend, however breaking and penetrating the Bearish Control Zone will signify short-term weakness.
Hope this article helps in making discretionary trading decisions.Source