In my previous post, I expected a decent hike to 5k which marks the 4th wave (this can still happen and so the question mark). But after the 2 failed attempts to cross the 50 Day EMA, this rally is weakened. No wonder the median (dotted) line is now appearing to be resistance. SL - $4100
It is possible that 4th wave has not ended and this could be the sub-wave C which will take it to the channel top at 5k (marked by the green circle). The linked post talks about this.
I broke down this entire correction into ABC (white) for simplicity and we appear to be in the last leg of the C wave. Now the previous bottom can act as support as the weekly 200 MA is there, if not, the green zone is a good support zone and also meets the bottom of the red channel
In the weekly chart as well, we can observe that 200 EMA (pink) acted as major resistance and blocked multiple attempts recently to cross it, thats why I believe this rally is weakened. At the same time, 200 MA line can offer support at $3200
It is possible that 4th wave has not ended and this could be the sub-wave C which will take it to the channel top at 5k (marked by the green circle). The linked post talks about this.
I broke down this entire correction into ABC (white) for simplicity and we appear to be in the last leg of the C wave. Now the previous bottom can act as support as the weekly 200 MA is there, if not, the green zone is a good support zone and also meets the bottom of the red channel
In the weekly chart as well, we can observe that 200 EMA (pink) acted as major resistance and blocked multiple attempts recently to cross it, thats why I believe this rally is weakened. At the same time, 200 MA line can offer support at $3200
Note
The 200 MA did offer support and helped the recent bounce, however it looks very weak now and facing resistance at the median line of the downward channelIf the 200 MA does not hold this time, price can drop to the bottom of the channel and go below $3000
Note
Back to the dreaded Weekly 200 EMA
Note
the 200 Weekly EMA, stops the rally in its tracks again!
Follow me for more updates
twitter.com/imkeshav
youtube.com/channel/UCskbBdZstBUQ_4y2o912zzw
twitter.com/imkeshav
youtube.com/channel/UCskbBdZstBUQ_4y2o912zzw
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Follow me for more updates
twitter.com/imkeshav
youtube.com/channel/UCskbBdZstBUQ_4y2o912zzw
twitter.com/imkeshav
youtube.com/channel/UCskbBdZstBUQ_4y2o912zzw
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.