It appears we are forming an inverted head and shoulders bottom on the daily after breaking out of the current short/medium term downtrend line from 10k.
Successful break from this will lead to a trend back to 8k where we will meet resistance with the longer downtrend line,
with my best guess being we will form a shallow accumulation zone in this price range to form a bull run back into the low teens near the end of the year. (see note at bottom on accumulation zones)
Factors for this trade:
1) Inverted Head and Shoulders
2) Double Bottom
3) 1D RSI/CMF Bullish Divergence
4) Classic charting: breakout of downtrend
Due to the descending volume on this move up, I am waiting for a move lower near the bottom @ 6k to buy in.
Accumulation zone:
This is most easily characterized by an inverse parabola that starts steep and chaotic and gradually calms with a tightening range until a shift in momentum causing a parabola back upwards (like a cup).
This can be identified by price repeatedly breaking downtrend lines and setting more and more flat downtrend lines until it breaks up past previous lower highs (at this point that line would be 10k).
This means I expect to have a very calm summer to let the dust settle and everybody to forget we exist until the momentum persists and we rise back from the abyss.
Act now or hold your peace ever fourth.
Goodluck!
Successful break from this will lead to a trend back to 8k where we will meet resistance with the longer downtrend line,
with my best guess being we will form a shallow accumulation zone in this price range to form a bull run back into the low teens near the end of the year. (see note at bottom on accumulation zones)
Factors for this trade:
1) Inverted Head and Shoulders
2) Double Bottom
3) 1D RSI/CMF Bullish Divergence
4) Classic charting: breakout of downtrend
Due to the descending volume on this move up, I am waiting for a move lower near the bottom @ 6k to buy in.
Accumulation zone:
This is most easily characterized by an inverse parabola that starts steep and chaotic and gradually calms with a tightening range until a shift in momentum causing a parabola back upwards (like a cup).
This can be identified by price repeatedly breaking downtrend lines and setting more and more flat downtrend lines until it breaks up past previous lower highs (at this point that line would be 10k).
This means I expect to have a very calm summer to let the dust settle and everybody to forget we exist until the momentum persists and we rise back from the abyss.
Act now or hold your peace ever fourth.
Goodluck!
Note
We may possibly be forming a small head and shoulders here to return to our buy zone of 6k.This is characterized predominantly by the descending volume (waning strength) of the upward movement.
This would support our previous assertion of a quick return to 6k before running up to 8k.
Note
I would also watch this overhead range for scooping a potential quick short due to the heavy 200 MA 4H resistance.Note
Adjust time frame +2 days.. head & shoulders still looks valid.Note
Eyeing 78xx for next major resistance zone. From there a clearer long-term trend will be established.
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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.