We are getting closer to a major area of interest, where the market needs to decide if you are going to end this bear cycle and start a new bull run or shake more people out of this business.
The circled zone is where the decision will be made:
Bear arguments:
- 0.382 fib resistance
- 34 fib resistance
- previous tops resistance
- cloud resistance
- oscillators looking that they might get exhausted by the time they get there
Bull arguments:
- inverse head and shoulders
- weak cloud zone, where it could easily be penetrated
- MA 20 about to cross over MA 50
- strong MACD
- a small breakout would lead to huge buy volume, which might create a snowball fomo effect
This might be the reversal we have been waiting for.
The circled zone is where the decision will be made:
Bear arguments:
- 0.382 fib resistance
- 34 fib resistance
- previous tops resistance
- cloud resistance
- oscillators looking that they might get exhausted by the time they get there
Bull arguments:
- inverse head and shoulders
- weak cloud zone, where it could easily be penetrated
- MA 20 about to cross over MA 50
- strong MACD
- a small breakout would lead to huge buy volume, which might create a snowball fomo effect
This might be the reversal we have been waiting for.
Comment:
getting closer to the circle. there will probably one more correction before the decision is made rising wedge and falling momentum will perhaps lead to a correction towards the cloud.
Comment:
4h TF: correction happened. support found on cloud and MA 100. Currently heavily oversold. I expect a bounce back to the log resistance line, which will be in the 11.5k-11.6k area
