The 4 hour chart shows us that price has remained within the ascending yellow channel. Price has also managed to remain on the topside of the large descending grey channel. Remember, the horizontal orange channel denotes where most of the price action has occured for the past two weeks and slightly smaller horizontal blue channel shows the same (but for just over the past week) as price has consolidated toward the $7800 area. These channels give us structure to price movement -- they define what is going on outside of the "noise" (ups and downs in price). The orange ascending triangle provides the strongest bullish case at the momentum. Adherence to the ascending support line increases the likelihood of a push through the resistance at the top of the triangle. With volume continuing to drop as it has, and shorts building as they have, a breach of that resistance should be a significant movement. The %B indicator is showing potential hidden bullish divergence (signalling a continuation of the upward momentum), but we really need to see a decisive movement up in the indicator to provide a sharp point which would turn this into definitive from potential. With 2.5 hours left, and the 30 minute being oversold recently, this is definitely a possibility. As noted on the chart, a bullish breach of the resistance should provide a target of around $8100, which is also the 1.414 fib extension and the top of the channel. The target is derived from the height of the ascending triangle. We can see that this will put price strongly above the 4 hour cloud as well. Finally, note the Bollinger Bands currently squeezing. The ability of the bulls to take this opportunity and push price above the BB moving average as the bands continue to squeeze will increase the potential for the squeeze to be bullish. Both, RSI and %B, remain above their ascending support lines, with resistance noted on RSI. MACD's resistance area is noted as well by a horizontal black line. The big picture for this time frame is that price has continued to print higher lows while the highs have remained flat (technically slightly lower).
Be sure to check out our other charts for the rest of the story.
Be sure to check out our other charts for the rest of the story.
