Watching for reversal patterns

17. Mai 2021

Morning folks,

So, our setup is done well, price hits 42K area, completing extended AB=CD pattern on daily chart. Since 41-43K area is strong weekly support, and market stands oversold as on weekly as on daily - we expect solid bounce up from here to 55K area in perspective of 1-2 months.

Meantime, to take the position we have two ways. First is - just take it with stops below 40K is for those who have enough funds to let market breath and place extended stop. For others - it would be better to wait for clear bullish reversal pattern. We suggest that it should be extended because this setup is on daily/weekly time frame. Currently we have butterfly "Buy", and potentially it could become a part of larger reverse H&S pattern. May be some other patterns could be formed. Right now it is difficult to say as price just has hit 42K area and response is just started.

Price action around 40-43K might be wobble, it is long-term support and it is more like a range rather than precise level. So, don't be surprised if price shows wide fluctuation around it before upward reaction starts. It could last as long as few weeks.