Jumping off from our last chart, we told you we could experience a strong resistance at the long term down trend line resistance between $7300-$7500 after a successful completion of the cup and handle formation.....
The bulls seems to have enjoyed great control in the last couple of weeks, but with the bearish signal appearing on the 4 hour, the bears long holiday may just be coming to an end.
3rd bearish divergence at the tip of the $7300-$7400 resistancearea..... further weakening the RSI. Strong momentum downwards as indicated by stoch, bearish MACD, depleting Volume in the last 24 hours, all indicating a weakening strength of the bulls.
A disturbing point of this 4 hour chart is that, after each of the rally we've experienced ever since price bottomed out on Feb 6 2018, a bearish divergence has always formed at the top of each rally just after hiting the downtrend resistance line, thus leading to an ABC correction wave downwards giving us lower lows.
The same pattern seems to be appearing now on the 4 hour chart. Could we be heading for new lows or a retest of previous lows? Could we experience a break of the current market structure in the next 2 weeks before a new Rally?
Below are hidden key support level to watch out for:
$7189
$7100
$6909
$6800
A bounce and a cosolidation of price above this levels will mean a continuation of the upward movement.
A break below this levels especially the $6800 support at 0.618 fib retracement level which is a strong reversal point, will mean a strong move downwards.
This is the area i will be looking to play the short game aggresively.
Where do you think price is heading from here?
Leave a comment and lets share our thoughts
Please i would appreciate you clicking on the like bottom before leaving........
The bulls seems to have enjoyed great control in the last couple of weeks, but with the bearish signal appearing on the 4 hour, the bears long holiday may just be coming to an end.
3rd bearish divergence at the tip of the $7300-$7400 resistancearea..... further weakening the RSI. Strong momentum downwards as indicated by stoch, bearish MACD, depleting Volume in the last 24 hours, all indicating a weakening strength of the bulls.
A disturbing point of this 4 hour chart is that, after each of the rally we've experienced ever since price bottomed out on Feb 6 2018, a bearish divergence has always formed at the top of each rally just after hiting the downtrend resistance line, thus leading to an ABC correction wave downwards giving us lower lows.
The same pattern seems to be appearing now on the 4 hour chart. Could we be heading for new lows or a retest of previous lows? Could we experience a break of the current market structure in the next 2 weeks before a new Rally?
Below are hidden key support level to watch out for:
$7189
$7100
$6909
$6800
A bounce and a cosolidation of price above this levels will mean a continuation of the upward movement.
A break below this levels especially the $6800 support at 0.618 fib retracement level which is a strong reversal point, will mean a strong move downwards.
This is the area i will be looking to play the short game aggresively.
Where do you think price is heading from here?
Leave a comment and lets share our thoughts
Please i would appreciate you clicking on the like bottom before leaving........
