- Late longs above 3000 CNY can easily get trapped
- Stock market crash is starting to reverse in a buy opportunity (the 'buy Gold and Bitcoin' theme can fade)
- intra-day 1 hour chart starts to look like a diamond top pattern
Short entry: 3015 CNY
Stop loss: 3075 CNY
First short target: 2600-2800 CNY
Second short target: 2000-2100 CNY
Sell forecast (red arrow) from two months ago is due
The weekly and monthly charts look still super bullish, but the daily chart is starting to show signs of weakness with the second day after the breakout already closing lower, as I had expected when I posted the chart.
I can change my mind. But I need to see stronger bulls who buy every dip without letting the price drop at all. Didn't happen so far. On January 8, 2016 we already had a decline far below 3000 CNY (the low was 2071 CNY). If the bulls were stronger they hadn't let this allowed to happen.