We can see the completion of the corrective wave has come to pass with the C wave completing below the trend line and upper resistance. We can be confident in this due to the pivot in line with the yellow dotted line between the wave 4 high and the wave C high. Initial candles and volume indicate we've started an impulse wave down. This is important because there's a head and shoulders neck line, slowly ascending with time. MACD is also showing bearish at the time of this writing. I expect we're on our way to retest the $7,800 support line. Should we follow a steep degree of angle to the line indicated by the Green dashed arrow, we may very well bounce from support to retest the trend line. We may also cross the neck line in that test. However, should we meander down to the support line in a sideways fashion, we run a greater and greater risk of 1st passing the rising neck line of the head and shoulders pattern before support which I expect would trigger a sell off which blows right past it due to the height of the formation being around $1,200. This number also corresponds with a support in the $6,600-$6,700 target area.Though it doesn't show it here on my free TV account choosing MACD instead, the 1 hour also shows a probable death cross which is now closing the gap in our descension from the C wave peak.
: I Believe its very important we descend from here at a steep angle if we're to make it back to retest the trend line and have another chance of breaking trend. The last time we've seen conditions like these were in the evening of Jan the 28th. I'm finding it more probable we'll have renewed discount buying positions within the next couple of days. On a side not, I'd like to share my observations of early Monday morning between 6a.m. and 7:30 a.m. EST suggesting a pattern of volatile selling off when we observe potential negative signals leading up to this time. The manor and time we retest the support line next I feel will have significant implications to the direction the market trends next.
: I Believe its very important we descend from here at a steep angle if we're to make it back to retest the trend line and have another chance of breaking trend. The last time we've seen conditions like these were in the evening of Jan the 28th. I'm finding it more probable we'll have renewed discount buying positions within the next couple of days. On a side not, I'd like to share my observations of early Monday morning between 6a.m. and 7:30 a.m. EST suggesting a pattern of volatile selling off when we observe potential negative signals leading up to this time. The manor and time we retest the support line next I feel will have significant implications to the direction the market trends next.
Kommentar:
This is for educational purposes only. Please do not trade on my TA alone. I hope this information is helpful and I welcome your constructive critique!
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