BCHUSD has been having a correction on the daily chart. Today’s intraday price action has been very bearish. Moreover, today’s daily candle seems to challenge an up trending trend line. The price is right at the support level of that trend line. If the trend line gets breached by a daily candle, which may be broken by today’s candle, then the price might take a long downward correction.
Let us have a look at the BCHUSD-Daily Chart
The Daily Chart
The daily chart shows that the price has been obeying the drawn trend line. Today’s candle (the last candle) which looks extremely bearish so far is right at the support line of the trend line. Since there are still many hours left of the trading day, thus there is a high probability that the daily candle makes a breakout on the trend line today. A daily breakout means a lot. It often makes a pair have a long correction or even change an existent trend. We have to wait to find out what happens here up to today’s daily candle’s close.
Meanwhile, let’s have a look at the H4-BCHUSD chart whether it has any message to give us.
The H4 Chart
The H4 chart shows that the price had a bounce from the level of 388.50. It seems this level may be held by the price for a while. Thus, an H4 consolidation and a breakout towards the downside will attract the H4 traders to sell the pair off.
Here is another equation which has to be in consideration. There has been a ‘Head and Shoulder’ pattern on the H4 chart and we are on the last wave of the pattern. Have a look at the chart.
Head and Shoulder on the H4 Chart
This may illustrate the head and shoulder pattern that I am talking about. The price is on the last wave and the length of the last wave usually comes out much longer than the first wave of the pattern.
The Bottom Line
The daily chart’s trend line breakout (has not happened yet) factor and the H4 chart’s head and shoulder may make the BCHUSD take a long correction on the daily chart. Traders are going to be very keen to find out how today’s daily candle closes. Today’s close is going to be very crucial.