Hello everyone.
I decided to take a few days off during this most recent pullback we have been seeing. There was no need to sit in front of the monitor and watch TA as I have been waiting on more confirmation towards a move up or down. I want to see the bigger picture before I nose dive in.
This is ONE potential scenario I can see playing out.
We are currently channeling in an inverted bear flag on the 4hr.
I am expecting we see a move upwards to my first target at approximately the $6600 level. If we can close with a good candle on the 4hr above the $6600 level we could then see a move upwards to the next resistance level at $7100. If we cannot break the $6600 resistance than I am anticipating a retrace to my second target around $6100.
If we retrace to the $6100 support level it could very likely break and retrace further to around $5800 as this would have been the second attempt at $6100 support. So be very careful if you enter a long around this point.
RSI has been gaining momentum as we are getting higher highs and higher lows. With that said we have some resistance around the 44.72 RSI level that we would like to see break to help us get to our first target.
MACD crossed and the histogram is currently giving us some upwards ticks. Indicating a potential move upwards.
This is an extremely volatile spot to be shorting or longing and if you do not have the proper experience/knowledge of what is going on I suggest sitting on the sidelines until we get through this extremely risky spot.
Happy to be back and happy trading.
Cheers
mk6dunc
I decided to take a few days off during this most recent pullback we have been seeing. There was no need to sit in front of the monitor and watch TA as I have been waiting on more confirmation towards a move up or down. I want to see the bigger picture before I nose dive in.
This is ONE potential scenario I can see playing out.
We are currently channeling in an inverted bear flag on the 4hr.
I am expecting we see a move upwards to my first target at approximately the $6600 level. If we can close with a good candle on the 4hr above the $6600 level we could then see a move upwards to the next resistance level at $7100. If we cannot break the $6600 resistance than I am anticipating a retrace to my second target around $6100.
If we retrace to the $6100 support level it could very likely break and retrace further to around $5800 as this would have been the second attempt at $6100 support. So be very careful if you enter a long around this point.
RSI has been gaining momentum as we are getting higher highs and higher lows. With that said we have some resistance around the 44.72 RSI level that we would like to see break to help us get to our first target.
MACD crossed and the histogram is currently giving us some upwards ticks. Indicating a potential move upwards.
This is an extremely volatile spot to be shorting or longing and if you do not have the proper experience/knowledge of what is going on I suggest sitting on the sidelines until we get through this extremely risky spot.
Happy to be back and happy trading.
Cheers
mk6dunc