Week 8: Are we going to see the 10.5k? =DSince the beginning of the year we have been in a very strong downtrend, but technically the trend has turned bullish on the 4H-Chart as soon as the Blue Structure level was violated after forming a Head & Shoulders.
Since the breakout the price has been in a strong upward movement until the RSI became extremely Oversold and on the next resistance in Green. Since then, the Price is getting some seller pressure.
If the price respects that resistance, it opens up 2 good opportunities to get long.
Scenario 1 (Green Arrows) : This scenario is my preferable one, because:
Breakout Confirmation of the Blue Structure
Breakout Retest of the Head & Shoulders formation
Fibonacci Confluence (61.8% from last leg & 38.2% from last bottom)
If the price retests the Blue Area, I will wait for a candlestick formation to get long for a retest of the previous High Target 1: @9k and an extended Target 2: @10.5k
Scenario 2 (Yellow Arrows) : This scenario is also a possible long opportunity if the price does not break and close below that area, because if it does, I will no longer be interested in a Buy, also on this scenario my targets would be more conservative: instead of aiming for an extended target I would only buy for a retest @7.5k for Target 1 and Target 2 a retest of the previous High @9k.
If you like the Idea give it a thumbs up, leave a comment if you want to discuss it or have any question.
Take care & Happy Pip-Hunting
