Stabilization Coming Soon
Updated
It looks like we broke out in a bearish manner from the triangle pattern.
A couple of points highlighted below:
1) Still no large sign of volume breakout which tells me this move may be more temporary.
2) We are nearing the 200 SMA... (~32k) I expect this to be our bottom in the near term and test back up in the 35k area.
3) If we were to break $32 to the downside, there is pent-up demand at $30 in the order books.
Bottom line, I see the bull market still intact, and this is a much needed shake-out/cleansing of a market that has been parabolic lately. I would be surprised to see anything significantly lower than 30k for an extended period of time.
Educational only!
A couple of points highlighted below:
1) Still no large sign of volume breakout which tells me this move may be more temporary.
2) We are nearing the 200 SMA... (~32k) I expect this to be our bottom in the near term and test back up in the 35k area.
3) If we were to break $32 to the downside, there is pent-up demand at $30 in the order books.
Bottom line, I see the bull market still intact, and this is a much needed shake-out/cleansing of a market that has been parabolic lately. I would be surprised to see anything significantly lower than 30k for an extended period of time.
Educational only!
Comment
The level worked out as planned with a nice bounce. I expect this to continue to serve as a strong support level. We need to keep a real eye on volume now and see which direction these next 48 hours take us.
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