Broken Handle suggests sideways price channel incoming
Increased volatility has led to broken supports, making the cup n handle formation less likely.
While price could still find a bottom just above 7900, its unlikely to result in bullish action to test the previous high above 10K.
We have pushed past the 0.5 Fib between 6500 and 10300, yet no dead cat bounce into support to suggest a reversal to form a bottom. Its likely we will see another down leg after brief consolidation in the near term, bringing us closer to low 7K, and maybe a bottom at 6700
Look for pull back to mid 8K before making a weak top around 8700, missing a test of previous hgh, then dumping again to low 7K.
If you are still in long position, keep it, but opening a new position or adding to long position is very risky.
While price could still find a bottom just above 7900, its unlikely to result in bullish action to test the previous high above 10K.
We have pushed past the 0.5 Fib between 6500 and 10300, yet no dead cat bounce into support to suggest a reversal to form a bottom. Its likely we will see another down leg after brief consolidation in the near term, bringing us closer to low 7K, and maybe a bottom at 6700
Look for pull back to mid 8K before making a weak top around 8700, missing a test of previous hgh, then dumping again to low 7K.
If you are still in long position, keep it, but opening a new position or adding to long position is very risky.
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