KSM has been channeling beautifully, unfortunately it appears to be doing it correctively. A pattern like this leans towards a higher probability of connecting to the downside, tread with caution.
Two bearish divergences have printed for TP signals on the 4hr TF with the 1st one printing a hidden bull divergence thereafter signaling continuation to the upside.
Ultimately our previous uptrend took place on a 4 day tf, and we ended that trend by moving into a 4 day correction on the last drop. This rally has taken us straight into bearish resistance zone on the TDI which should be presumed as a resistance standpoint. If we want to kick up higher, likely this channel will need to end and we'll set in a higher low, followed by a higher high, but currently the indicators don't fall in this direction just yet, we'll need more data to come in to see if we can shift the market sentiment in that direction.
Since the previous lows have continuously been defended raised stops below them would be intelligent and alarms set to get notified when they break. As always, not financial advice. I noticed the corrective climbing pattern on KSM and wanted to share my outlook and warning.
DO YOU SEE A MORE BULLISH SCENARIO THAN THE C LEG UP I'VE SHARED? SHARE YOUR OUTLOOK IN THE COMMENTS BELOW.
Kommentar
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Ascending channel support has been broken on KSM now, I expect a retest to get rejected and further downside.
Kommentar
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Today's move on KSM changes the count. Looking at this. Either impulse towards the upside or this current rally is a C wave in the making, expecting a 4th and 5th to form on it and then a pullback to make it the wave 1 of a higher degree impulse or have it get rejected back into the previous range it broke.
Kommentar
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if you look at the corrective labeling of the first chart you'd see that it makes a good A wave, rather than the impulse labels I provided in the 2nd chart as the 3rd wave is such a stair stepper rather than being a powerful move. As such, have a plan for the orange arrow, otherwise looking for some nice upside. Will keep updated on it.
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Everything about this asset turned corrective in its rally attempts. We can see it from the start that we rallied correctively which heads a lot of caution from an Elliott Wave perspective. We did complete the updated black impulse and corrective thereafter, but then just scooted sideways which wasn't really my projection there. Iwas either looking for signs of support for an impulse break towards the upside or the orange arrow that took us under the trendline and continued our larger tf downtrend. This would have been a difficult one to navigate as we trended sideways and got pretty choppy price action.
TA shows KSM going higher not lower. About to break out
NewWave_Traders
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@pmd1117, Your TA shows this or you're referencing my C wave move up as showing it can go higher? The ta above brings awareness to it moving up correctively, which suggests a macro higher low is looking to be put in next from the 144 low.
bigcraz
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Great analysis, however, would you correct/adjust it in light of the price movement over the past 4 hours? We're back up to $335. Curious?
NewWave_Traders
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@bigcraz, I don't have anything to change as that move isn't significant enough for the tf my analysis is on.
TheSignalyst
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KSM is a beast
NewWave_Traders
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@TheSignalyst, yeah, some alts are pretty epic runners. Thanks for commenting.