Hammer followed by hammer clone testing red diamond support. Closing below the red support indicates potential for further weakness. The hammer and its clone seems to suggest a probable rebound may happen. If no confirmation candlestick bar appears this week to support a rebound a drop into the lavender channel will probably take place. A drop into this channel will confirm the diamond top pattern and will result in further weakness.
Take note that if a hammer confirmation formation appears any upward move will probably be challenged by the green dashed diamond resistance line followed by the green bold resistance line. A successful breakout above these green resistances is highly remote. Any miraculous breakout here will result in a diamond continuation pattern and more upward swing is expected.
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