We can observe descending volume, on this trend bounce, which I am not liking, this means that the bounce is (weak).
There are multiple scenarios that can play out.
1.) We cleary can see that we were in a symmetrical triangle/bull flag, although a new bull flag might be confirmed, with this bounce we might have here. This scenario has three possibilities, we go back up towards the ascending resistance, and confirm it with a bounce back down, from there we could be looking to hold support at the second bull flag and rip back up, the last scenario is that the first bull flag was right, and we would initially be looking to go down towards the 50K levels. This later 3rd case would make me believe that we will go further down dipping into the 45K-48K, before receiving a strong bounce back into the bull run, this lower bull run support line, was the causal of the surge from 20K, failure to recover from here has me aiming at the mid 20s, low 30s.
2.) Another possible scenario is to fall back to 50K's right here, because of a posible bear flag creation, this scenario would look to hold support at the same levels discussed above.
3) The most complicated and most worrisome scenario, a dead cat bounce: A dead cat bounce scenario implies to bounce from the previous low at the .5, (golden pocket: .618/.65), or .786. This dead cat bounce, implies further downtrend, this 3rd scenario would be debunked after breaching the 59.7K area, I would only become full bullish after hitting at any time the 60.5K area.
These are the scenarios that i see playing out, so by this you are ready for whatever is to come. I wish you all good luck, and a great day!
There are multiple scenarios that can play out.
1.) We cleary can see that we were in a symmetrical triangle/bull flag, although a new bull flag might be confirmed, with this bounce we might have here. This scenario has three possibilities, we go back up towards the ascending resistance, and confirm it with a bounce back down, from there we could be looking to hold support at the second bull flag and rip back up, the last scenario is that the first bull flag was right, and we would initially be looking to go down towards the 50K levels. This later 3rd case would make me believe that we will go further down dipping into the 45K-48K, before receiving a strong bounce back into the bull run, this lower bull run support line, was the causal of the surge from 20K, failure to recover from here has me aiming at the mid 20s, low 30s.
2.) Another possible scenario is to fall back to 50K's right here, because of a posible bear flag creation, this scenario would look to hold support at the same levels discussed above.
3) The most complicated and most worrisome scenario, a dead cat bounce: A dead cat bounce scenario implies to bounce from the previous low at the .5, (golden pocket: .618/.65), or .786. This dead cat bounce, implies further downtrend, this 3rd scenario would be debunked after breaching the 59.7K area, I would only become full bullish after hitting at any time the 60.5K area.
These are the scenarios that i see playing out, so by this you are ready for whatever is to come. I wish you all good luck, and a great day!