Checking out the technical of CHZ and starting off with the Weekly Time Frame, the price on a macrostructure is still bullish, but that is not just important at all. Checking out the structures on a bit micro level, it can be observed that, price is still breaking structures to the downside, and making Lower Highs and Lower Lows. The last three weeks closed as bearish which shows that bears are still in control and might be able to push price downside to some more extent. Now the volume is not too much, but still, it can’t be ignored. Besides that, talking about this Impulse to the downside overall seems strong as well. So going with the Order Flow, it’s preferable to go with the short positions unless some sort of Wyckoff Accumulation is observed.
Nothing more on the weekly Time Frame so moving one step down to the Daily Time Frame, it can be observed that after that previous push to the downside, price correctively pushed upside and after making another Lower High, its impulses to the downside again. Now at the moment, the price is not showing any reversal, and moreover talking about the harmonic ABCD pattern and Pole Flag Pattern, both seem completed for now. This shows that the price still has some strength to the downside.
Moving down one more Time Frame which is the 4 Hour Time Frame, the price has some more confluences which shows that it has some potential to the downside. Talking about the structure firstly, that is entire to the downside even in this lower Time Frame. Now as the price was breaking structure to the downside, it flipped the Demand as well, so Supply is in control, and the price is still within that Supply Zone. Now it can’t be ignored that price once has touched that Supply Zone, and not a great reaction was seen from that even tho the momentum of bulls was just not strong. Now as the price is again at the same level so it’s quite possible that the price may do the Stop Hunt of the previous High and after grabbing the liquidity it may fall down. Price can be anticipated that the stop hunt may end with the previous Order Block which lies at $0.1931 from where shorts can be taken. Talking about the invalidation, if that level breaks this whole scenario will get invalidated, and talking about the target the level of $0.1551 may serve as a great one.
