This correction is healthy because price didn’t break structure after the spike — it paused and started ranging. Instead of giving back the entire move,
$STO is consolidating above key support, which tells me this is absorption, not weakness. I’m watching how price is holding ground rather than panicking lower.
After the push toward 0.111, price corrected into a tight range and started forming higher lows. They’re building strength here — sellers tried to push it down but failed to get continuation. That usually happens when buyers are quietly stepping in.
Trade Setup I’m watching:
Entry Zone: 0.1020 – 0.1045
This zone is strong because it was a previous reaction area multiple times on the chart. Price bounced from this level earlier and is now holding above the 0.5 retracement of the move from 0.1005 to 0.1110. Repeated wicks and closes here show buyers defending it.
Target 1: 0.1090
This is the first resistance and rejection area from the recent pullback.
Target 2: 0.1155 – 0.1180
This zone sits above the previous high and acts as a liquidity target if momentum expands again.
Stop Loss: 0.0995
If this level breaks, the base fails and the bullish structure is invalid.
I’m watching how STO behaves around this support. If this level holds, the range turns into accumulation and continuation becomes likely. The way price is compressing tells me they’re preparing for the next move.
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