Local bottom was found exactly on the 3D lows of the 2020 consolidation (before the breaking of the old ATH)
Today's daily candle has made higher lows, higher highs and is a bullish engulf candle. On top of that the close was exactly over the daily resistance of 20400 (coincidence?)
Also MACD shows the local bottom is very likely to be in and we're now preparing for a rally which will -at least- reset MACD (maybe put it in the positives).
Weekly has also closed with a wick above the "pre-breakout" 2020 area (17600-19440)
Here's my idea:
We're preparing for a massive bear market rally.
-- We will break low TF support of 20200 and deep lower (somewhere around 18800 and 19450) to scare all longs and force people to close positions + open shorts
-- We will then rally towards either 22500 or 28800 (depending on how we do on the first resistance)
Why this could happen:
-- Next FOMC minutes is 6th of July
-- Next CPI report is 13th of July
Plenty of time to FOMO people into thinking the bear market is over and make money both ways (long to 28, short back down)
This will end around the beginning of July.
After CPI report we'll see
Good Luck!
p.s. keep the prices marked below 18k. We might not see them soon but we will see some of them :)
Today's daily candle has made higher lows, higher highs and is a bullish engulf candle. On top of that the close was exactly over the daily resistance of 20400 (coincidence?)
Also MACD shows the local bottom is very likely to be in and we're now preparing for a rally which will -at least- reset MACD (maybe put it in the positives).
Weekly has also closed with a wick above the "pre-breakout" 2020 area (17600-19440)
Here's my idea:
We're preparing for a massive bear market rally.
-- We will break low TF support of 20200 and deep lower (somewhere around 18800 and 19450) to scare all longs and force people to close positions + open shorts
-- We will then rally towards either 22500 or 28800 (depending on how we do on the first resistance)
Why this could happen:
-- Next FOMC minutes is 6th of July
-- Next CPI report is 13th of July
Plenty of time to FOMO people into thinking the bear market is over and make money both ways (long to 28, short back down)
This will end around the beginning of July.
After CPI report we'll see
Good Luck!
p.s. keep the prices marked below 18k. We might not see them soon but we will see some of them :)
