Consolidating - Sell @ 850, Buy @ 980.
> Consolidation Pattern
Once again we are in a lacklustre market with price drifting sideways in a consolidation pattern confirmed by RSI which is rising in a narrow wedge. Both patterns will resolve once a new trend is established.
> Support & Resistance
I have no idea where price will go - yesterday's declines were limited by the trading range 860- 980 established in the last 3 days (see previous postings). My guess is for more volatility and given bearish sentiment, we will likely see further declines. Short term moving averages are providing support but longer term MA's are bearish.
> Daily Chart
Looking at yesterday's daily chart, there is the possibility for the Falling 3 Method continuation candlestick pattern to play out with further downside.
> Trading Strategy
I will sell on a break of 850 on MtGox (so roughly 820 on Bitstamp). Its slightly below the 860 level as I want to avoid a false signal plus my MT4 EA will issue a sell signal at that level. I will go long on a clean break of 980 on MtGox.
> Consolidation Pattern
Once again we are in a lacklustre market with price drifting sideways in a consolidation pattern confirmed by RSI which is rising in a narrow wedge. Both patterns will resolve once a new trend is established.
> Support & Resistance
I have no idea where price will go - yesterday's declines were limited by the trading range 860- 980 established in the last 3 days (see previous postings). My guess is for more volatility and given bearish sentiment, we will likely see further declines. Short term moving averages are providing support but longer term MA's are bearish.
> Daily Chart
Looking at yesterday's daily chart, there is the possibility for the Falling 3 Method continuation candlestick pattern to play out with further downside.
> Trading Strategy
I will sell on a break of 850 on MtGox (so roughly 820 on Bitstamp). Its slightly below the 860 level as I want to avoid a false signal plus my MT4 EA will issue a sell signal at that level. I will go long on a clean break of 980 on MtGox.