Rally tapering off, here's what the next week looks like
Updated
Decreasing volume, classic topping patterns, predictable fib level resistance appearing.
The whole rally got stopped by the daily 200 moving average; there are some interesting patterns going on on the daily to suggest this is just a little correction in a downtrend.
Short below the lower of the two thin black trendlines for a bounce to the thicker one, back up to thin or nearest fib.
Short more if we fail to bounce there, look for support zones.
Then there will be a ' double bottom ' bounce around 6600 or even on the confluence of bottom trendline, red fan line, 0.5 fib @ 6950
that bounce isn't really sign of bullish reversal until back above the thicker black trendline that we would have lost a few days before.
I've drawn this on an hourly chart but it might take longer, and play out on the 4h or daily instead, i'm just identifying levels here.
The whole rally got stopped by the daily 200 moving average; there are some interesting patterns going on on the daily to suggest this is just a little correction in a downtrend.
Short below the lower of the two thin black trendlines for a bounce to the thicker one, back up to thin or nearest fib.
Short more if we fail to bounce there, look for support zones.
Then there will be a ' double bottom ' bounce around 6600 or even on the confluence of bottom trendline, red fan line, 0.5 fib @ 6950
that bounce isn't really sign of bullish reversal until back above the thicker black trendline that we would have lost a few days before.
I've drawn this on an hourly chart but it might take longer, and play out on the 4h or daily instead, i'm just identifying levels here.
Note
The dump is on. Love it when the next couple candles fit the projection. Now let's see if we get a bounce off 7850 or if we hit our heads on 8100 first.Note
guess 8100 first! still, not seeing this reverse just yet.Note
we working on that double top, will be making another classic bollinger bands top (see the one marked in yellow); First spike cuts through the bands , then a slight correction and another rally to the same level, this time well within the range of the bollinger bands. That's the classic BB top, and we might be making another here. So, shorts in at 8400.
Note
Double top just about ready to form
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