We note important local support level 3878, where we get merge of lower Bollinger band with mid-term trending line. Thus it’s the key level to define scenario of either continuation of potential accumulation (black arrow) or decline to the next support level 3758 (watch the red arrow).
We have an identical picture on the junior time-frame as well - market corrects downwards to the support 3878, where traders can get important signals regarding reaction of the price on this region.
Let’s note, that as we type this report, bears managed to break the lower Bollinger band and created a premise for further drop of the quotes.
Main scenario: Decline towards 3758.
Alternative scenario: Touch of the 3878 level and then upward bounce in direction 3929.
Shorts towards 3758.