Daily Time frame:
- TZA has a potential reversal candlestick (Hammer)
- If the upper descending trend line is breached we could make the case that TZA is breaking out of a falling wedge and probably the decline from the March high has concluded an EW pattern (Maybe the wave A of a Zig Zag).
- If this scenario plays out then a countertrend rebound should be expected with an unknown target ( I have no idea) although maybe it could retrace towards the origin of the wedge at R3 = 49.40
- The MACD is displaying a positive divergence but we need to see a solid bullish signal cross which would occur if price breaches R1 = 40.30
60 Minute time frame:
- We can make the case that TZA has completed a reversal pattern (Ending Diagonal)
- If this is the case then in order to expect the kickoff of a large countertrend rebound the support shelf that has a range 38.90 - 38.65 must hold
