Trend Analysis:
An upward trend has formed yesterday and we are now approaching the resistance level of ~$9,800. The resistance level at this point is also where the upper line of our triangle converges. This means that there could be a break-out soon or we could retract a bit to the ~$9,200 level before a big move is made. We will continue to test the resistance here, and if we breakthrough, we could see the price reach ~$10,600. If we keep getting rejected, we should land close to the $9,200 mark.
If the price falls below the $9,200 mark, then this may indicate that this upward trend was a bear flag. I mentioned this possibility in my last TA.
Technical notes:
The RSI is gaining some massive momentum, and we are still not in the oversold range, so there is still much more space for the price to move. The volume is decreasing, and this could mean we are consolidating before a big move. Usually, before a big move the volume decreases and then increases dramatically as we either head up or down.
Conclusion:
We will continue to test the resistance of ~$9,800 and if we can break through it, we should be good to go close to $11,000. If we can't break through, expect a drop to the low 9,000s.
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Happy trading!
An upward trend has formed yesterday and we are now approaching the resistance level of ~$9,800. The resistance level at this point is also where the upper line of our triangle converges. This means that there could be a break-out soon or we could retract a bit to the ~$9,200 level before a big move is made. We will continue to test the resistance here, and if we breakthrough, we could see the price reach ~$10,600. If we keep getting rejected, we should land close to the $9,200 mark.
If the price falls below the $9,200 mark, then this may indicate that this upward trend was a bear flag. I mentioned this possibility in my last TA.
Technical notes:
The RSI is gaining some massive momentum, and we are still not in the oversold range, so there is still much more space for the price to move. The volume is decreasing, and this could mean we are consolidating before a big move. Usually, before a big move the volume decreases and then increases dramatically as we either head up or down.
Conclusion:
We will continue to test the resistance of ~$9,800 and if we can break through it, we should be good to go close to $11,000. If we can't break through, expect a drop to the low 9,000s.
Follow me on Twitter for more TA!
Happy trading!
