The grey support band sits beneath several months of price interaction. The chart shows repeated reactions at this region, with buyers stepping in each time the price approached the zone.
In the first cycle, the support caught a strong decline and formed the left shoulder of the initial pattern. The zone acted as a structural floor during several retests and created a foundation for the market’s upward move.
During the second cycle, the price returned to the band after a steep sell-off. The zone once again held firm and formed the head of the pattern. A sharp recovery followed as the price surged back toward the trendline.
Now, in the latest move, the price has tapped the same support once more. A new right shoulder is outlined on the chart, and the projected recovery path shows an upward arc toward the upper trendline near $5,500.
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