Big Surge in Bull Volume Takes Us Back Up Towards the Neckline
Updated
A much needed bullish volume surge breaks price action back up above the 4hr 200 and 50MAs and sends us back up towards the neckline of the inverted head and shoulder pattern. People are attributing it to the rumor that Blackrock is considering getting into crypto ETFs. Botht he 4hr stochrsi and rsi are super extended in the overbought zones..so I think our most likely scenarios here now are either consolidate through a bull flag pattern for a bit to bring those indicator levels back down or potentially form a bart and dip back down a little bit to cool off the indicator levels. I still feel confident we will break above the inverted head and shoulder neckline eventually but probably not until after the futures expire on the 27th. This bullish break came at a crucial time too as the 4hr 50 and 200mas were wanting to create a death cross and this break should hopefully keep any death cross brief and send it right back into a golden cross. Although I am long term bullish, all factors considered here leaves this idea in the neutral zone.
Note
the price action went up to the enckline and was rejected as it triggered a bunch of bot sells...I exited my position and set up a stop buy a pip or so above the neckline at 6867. I think this gives me the greatest risk to reward advantage...if it gets rejected and does a slight dip again I can limit buy back in there and make a small profit....if it triggers my stop...it does so after breaking the neckline of the inverted h&s and triggering the breakout which insures we will be going much further upward.Note
on the 1 day rsi and stochrsi there is still plenty of room to go up. I would think the 4hr rsi and stochrsi need to cool off a bit first but so far the priceaction is holding strong here so we may see an attempt to break the neckline before any next dip.
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