We are getting closer to a major area of interest, where the market needs to decide if you are going to end this bear cycle and start a new bull run or shake more people out of this business.
The circled zone is where the decision will be made:
Bear arguments:
- 0.382 fib resistance
- 34 fib resistance
- previous tops resistance
- cloud resistance
- oscillators looking that they might get exhausted by the time they get there
Bull arguments:
- inverse head and shoulders
- weak cloud zone, where it could easily be penetrated
- MA 20 about to cross over MA 50
- strong MACD
- a small breakout would lead to huge buy volume, which might create a snowball fomo effect
This might be the reversal we have been waiting for.
The circled zone is where the decision will be made:
Bear arguments:
- 0.382 fib resistance
- 34 fib resistance
- previous tops resistance
- cloud resistance
- oscillators looking that they might get exhausted by the time they get there
Bull arguments:
- inverse head and shoulders
- weak cloud zone, where it could easily be penetrated
- MA 20 about to cross over MA 50
- strong MACD
- a small breakout would lead to huge buy volume, which might create a snowball fomo effect
This might be the reversal we have been waiting for.
Note
getting closer to the circle. there will probably one more correction before the decision is made rising wedge and falling momentum will perhaps lead to a correction towards the cloud.Note
4h TF: correction happened. support found on cloud and MA 100. Currently heavily oversold. I expect a bounce back to the log resistance line, which will be in the 11.5k-11.6k area
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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.