Hello Traders,
With the dump yesterday, Imo the market has shifted from more Bullish to more Bearish. Of course the Bulls can still regain control in the short term, but its an uphill battle for sure.
I'll break it down in the most simple terms:
Above $390 = Bullish
Below $390 = Bearish
Use this only as a guide to help manage risk, the trend can still be long term bearish while price is above short term bullish above $390.
However in the short term, if price is above $390, then the bulls still have a shot at regaining control.
Here are some things to watch for:
1) Key support at $390
2) The descending trendline connecting the range highs (May act as resistance)
3) The 50 period EMA (Price will likely test the 50 EMA, potential rejection from the bears)
4) The Bears will be scouting a lower high anywhere below resistance at $411
5) A break of the prior high at $411 will be very bullish for the short term
6) The ascending trendline connecting the range lows (This is vital for the bulls that price does not fall below this trend line.
7) Larger wedge formation forming (Price could trade within this range for the next couple months)
If price breaks below $390 expect a quick sell off in price.
With the current economic conditions, the broader market will likely stay bearish for several more months. Remember, Bear cycles can still have melt your face off rallies.
However given the CPI data yesterday and what that means for potential rate hikes, I'm expecting price to eventually head lower.
Start planning your shorts and be patient.
Thanks everyone and best of luck trading!
With the dump yesterday, Imo the market has shifted from more Bullish to more Bearish. Of course the Bulls can still regain control in the short term, but its an uphill battle for sure.
I'll break it down in the most simple terms:
Above $390 = Bullish
Below $390 = Bearish
Use this only as a guide to help manage risk, the trend can still be long term bearish while price is above short term bullish above $390.
However in the short term, if price is above $390, then the bulls still have a shot at regaining control.
Here are some things to watch for:
1) Key support at $390
2) The descending trendline connecting the range highs (May act as resistance)
3) The 50 period EMA (Price will likely test the 50 EMA, potential rejection from the bears)
4) The Bears will be scouting a lower high anywhere below resistance at $411
5) A break of the prior high at $411 will be very bullish for the short term
6) The ascending trendline connecting the range lows (This is vital for the bulls that price does not fall below this trend line.
7) Larger wedge formation forming (Price could trade within this range for the next couple months)
If price breaks below $390 expect a quick sell off in price.
With the current economic conditions, the broader market will likely stay bearish for several more months. Remember, Bear cycles can still have melt your face off rallies.
However given the CPI data yesterday and what that means for potential rate hikes, I'm expecting price to eventually head lower.
Start planning your shorts and be patient.
Thanks everyone and best of luck trading!
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.
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.