I said I wouldn't want to be short after the shakeout Friday...
Good Monday morning, traders. Last Friday I warned, after the shakeout, that I wouldn't want to be short as it appeared the larger interests were filling longs. Fast forward to today and here we stand this morning at about $300, on average, higher than that shakeout. So what does this mean for our current situation? Are we going up or down? After this morning's move, most RSIs below the 12H are topped out having either went well into oversold or at least hit it. It also appears we are transitioning from lower lows and highs to higher lows and highs which would insinuate a trend reversal. In terms of the IHS that everyone is watching, we do see expanding volume as the right shoulder is being completed. A close above $6900 would set retail FOMO into motion. This is what I am expecting to see happen. I do believe we are bullish at this time. That doesn't mean we will definitely set an ATH from this point, just that we should expect more upward momentum rather than downward for now.
We can see that price hit resistance at the 78.6 retracement of the move up from $5780-$6839.40. As I mentioned last week during our live streams, a break to the upside of the DBW should find resistance at the top of the wedge, and if price pushed through that then we would see a push to the previous period's pivot. The waiting supply zone is noted between $6750 and $6900. It's been hit multiple times already which I stated would likely see it not withstand another attempt at it. At this time, OBV is also preparing for a push through its immediate resistance on the 1H. A push through would set up price's push through the aforementioned SZ.
Although the chart does appear bullish at this time, a failure to continue this bullish momentum would likely result in a retest of the corrective cycle's low. Price needs to close above $6900 to fuel the movement with further momentum. The last time the 1H RSI was this high was during the April 12th short squeeze. Retracement is needed, but current bullishness could see price attempting to head higher before any meaningful retracement happens. If we do see retracement, then we want to make sure that $6400 holds. As long as it does, we should expect to see price ready itself for a push through the SZ. A close above this SZ should have price targeting $7800-$7900.
Don't forget, you can always click on the "share" button at the lower right under the chart and then click on "Make it Mine" to bring up the live chart so that you can explore it as you would like to.
We can see that price hit resistance at the 78.6 retracement of the move up from $5780-$6839.40. As I mentioned last week during our live streams, a break to the upside of the DBW should find resistance at the top of the wedge, and if price pushed through that then we would see a push to the previous period's pivot. The waiting supply zone is noted between $6750 and $6900. It's been hit multiple times already which I stated would likely see it not withstand another attempt at it. At this time, OBV is also preparing for a push through its immediate resistance on the 1H. A push through would set up price's push through the aforementioned SZ.
Although the chart does appear bullish at this time, a failure to continue this bullish momentum would likely result in a retest of the corrective cycle's low. Price needs to close above $6900 to fuel the movement with further momentum. The last time the 1H RSI was this high was during the April 12th short squeeze. Retracement is needed, but current bullishness could see price attempting to head higher before any meaningful retracement happens. If we do see retracement, then we want to make sure that $6400 holds. As long as it does, we should expect to see price ready itself for a push through the SZ. A close above this SZ should have price targeting $7800-$7900.
Don't forget, you can always click on the "share" button at the lower right under the chart and then click on "Make it Mine" to bring up the live chart so that you can explore it as you would like to.
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