Its been a very nice rebound thus far and as you can see on the 4 hour chart we now have 3 candle closes above the ever-important buy/sell line (50MA), renowned technical analyst Steve Primo has often said that once you have 5 closes above the buy sell line you are in a buyers market and 5 closes below puts you in a sellers market, so we only need 2 more closes above this line to be in a buyers market on the 4hr chart. Considering how the T-line(in yellow) has now come up to almost overlap with the Buy/Sell line as a double reinforced support I think the buy sell line maintaining it's support role is highly likely and that we will indeed see 5 closes above the buy sell line on the 4hr chart. Which should finally push us back above the current fib line resistance and likely flip its role from resistance to support as well. I think because of these factors, the bulls will continue their bull impulse up after this brief consolidation....I personally don't think any significant retracement will happen until the next foib line up (in blue) around the big psychological support of 8,000...I expect at that time we will get our first real retracement that isnt just sideways consolidation...that will be a great opportunity for us to see whether or not we will get a higher low...we just recently got our first higher high in awhile and need to confirm that the bulls have taken control from the bears by getting a follow up higher low on the enxt retrace...and then a higher high to go with it on the impulse after that to confirm we are fully back in bull mode....once we can do that, I anticipate the bull surge will be enough to reverse the death cross and trigger a golden cross which should put us into a mega bullish mode and hopefully get us back above the1day charts buy/sell line high enough to get 5 closes back above it and put us fully back in the bull market for the second quarter of 2018. This big bullish domino effect starts first though with us getting our 5th candle close above the 4hr charts buy sell line.
Comment:
the price action has somehow squeezed its way in between the 50ma (now resistance) and the t line (now support) if it finds a way for the 50ma to squeeze the price action below the t line and the t line flips to resistance then it is going to be short time my friends.....a smart stop loss therefore is probably 7240 or so. If we go back down to that we will be dipping a decent amount, and I will be going short again at least temporarily.
Comment:
bounced back above the 50MA an encouraging sign...but we still have 30 minutes left in this 4hr candle...As long as the candle closes within the current bull flag even if below the 50ma there's still hope for the bull momentum to continue..the close of this candle will let us know where we go next.
Comment:
unfortunately we have closed under the potential bull flag and the 50ma and the t line so it's time to flip to a short...sorry bulls...but if this fall turns back around before 6450 then there's a good chance for a higher high after that.