In my last post here, I did warn of 3 major resistance to look out for, the $4150-$4200, $4400 and $4800-$5000 and I did told you where I expected price to pull back..($4100-$4200 area)
So I was not surprised when the bears took over at our 1st target...$4198.
The long dildo seen on the daily chart shows how strong the sell pressure is, and this is a sign that the bears are fully back.....
So where are we headed from here?
Weekly: after a flush break out of the 12 weeks symmetrical triangle in what appears to be a fake out (bull trap) price pulled back strong into the symmetrical triangle, leaving a long wick on the body of the candle an indication that we may likely see a bearish week ahead.
However, if the downtrend line resistance fails to hold, the following support levels should be our next reversal level depending on where the bulls feels comfortable to step back in.... $3030, $2380, $1780, $1266.
Daily: the daily seems to have printed a long dildo giving the bears an upper hand to push price lower.
RSI and stoch seems to be bearish AS of now, an indication that price may head towards the 50 day MA at $3600 where I did expect us to find support for a while before heading down.
A beak below the 50 MA will take price straight to the downtrendline support at $3480, a break below this support will lead to a retest of the yearly lows and if the yearly lows fails which I will be looking out for, the following levels should be our next support area respectively...... $2400, $1800, $1260
Finally, I also did talk of a fractal repetition of the 2013/2014 bear market price action, and if this were to continue as we have seen from the beginning of this bear market, I did expect a 67% retrace from where we got rejected @ $4198 IMO
