Good morning, traders. Over night we saw price fall through the ascending wedge support. I mentioned yesterday that traders should remain mindful of the H4 Stoch RSI as it had dropped out of overbought and had a lot of room to continue dropping. I also mentioned throughout the day that volume continued to drop as price rose from the August 14th swing low and this wasn't a sign of demand. As I have been stating, if price fell through the ascending wedge support I was looking for an initial bounce around $10140 on Coinbase, and it bounced slightly lower at $10124. However, price didn't get much of a bounce and has continued to push lower to the EQ of my noted upper blue demand, at the 70.5% retracement, which means that if you heeded that analysis then you should've safely locked in some pretty great profit by now and are potentially looking for another entry.
The H1 RSI is pushing out of oversold and Stoch RSI is oversold. H4 Stoch RSI is oversold and RSI is nearing oversold at 33. H1 price is printing an ascending broadening wedge within a potential descending wedge as well. This all suggests that we should be seeing some kind of bounce at least, which we are seeing at this moment. The descending wedge resistance may or may not be legitimate but that is my best guess for where it should likely be at this time. The target for that local descending broadening wedge is just below the pivot around $10400. The orange zone just above price indicated the H4 supply level, so price must push through that in order to reach the target. Notice that supply and the target, both, align with the HVNs on the right hand of the chart.
H4 volume is interesting at this time. It is nearing the level seen by the initial H4 drop, a couple of candles earlier, but the candle spread is significantly smaller which tells us that the effort to push lower is nearly the same but the result is a lot less. As usual, this indicates that price is likely to reverse. With another 80+ minutes to go in this candle, it is possible we may even see a green candle body. More interesting on this H4 TF is the large green descending broadening wedge that may be printing. I spoke about this during yesterday's live stream. We can see 4 alternating touches and the recent drop, which as I explained is most often the way the pattern plays out before price pushes through the wedge's resistance. I still believe the R1 pivot is a likely target at around $11400, but we need to see some confirmation for that. Until then, the shorter term targets should be watched. However, as I discussed yesterday, closing above the large wedge's resistance should indicate a target of up to $12660, just above the R2 pivot, depending on when price exits the pattern. I'll break down my thoughts on this during this morning's YouTube video update.
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Be sure to hit the "thumbs up!"
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
You can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own. When you do, be sure to explore the other TFs to see what I'm watching on those TFs.
The H1 RSI is pushing out of oversold and Stoch RSI is oversold. H4 Stoch RSI is oversold and RSI is nearing oversold at 33. H1 price is printing an ascending broadening wedge within a potential descending wedge as well. This all suggests that we should be seeing some kind of bounce at least, which we are seeing at this moment. The descending wedge resistance may or may not be legitimate but that is my best guess for where it should likely be at this time. The target for that local descending broadening wedge is just below the pivot around $10400. The orange zone just above price indicated the H4 supply level, so price must push through that in order to reach the target. Notice that supply and the target, both, align with the HVNs on the right hand of the chart.
H4 volume is interesting at this time. It is nearing the level seen by the initial H4 drop, a couple of candles earlier, but the candle spread is significantly smaller which tells us that the effort to push lower is nearly the same but the result is a lot less. As usual, this indicates that price is likely to reverse. With another 80+ minutes to go in this candle, it is possible we may even see a green candle body. More interesting on this H4 TF is the large green descending broadening wedge that may be printing. I spoke about this during yesterday's live stream. We can see 4 alternating touches and the recent drop, which as I explained is most often the way the pattern plays out before price pushes through the wedge's resistance. I still believe the R1 pivot is a likely target at around $11400, but we need to see some confirmation for that. Until then, the shorter term targets should be watched. However, as I discussed yesterday, closing above the large wedge's resistance should indicate a target of up to $12660, just above the R2 pivot, depending on when price exits the pattern. I'll break down my thoughts on this during this morning's YouTube video update.
_____________________________________________________________
Be sure to hit the "thumbs up!"
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
You can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own. When you do, be sure to explore the other TFs to see what I'm watching on those TFs.
