Evening traders! In my last two posts I shared my thoughts on the down channel we were stuck in and the up channel that was beginning to form. The first pull back to $8300 kept us above the old and well inside the new. I’m long investment but waiting for a long trade. Here’s what I’m looking at…
-strong daily close above the 200 SMA – bullish
-market trading above the 50 SMA – bullish
-higher lows on the slow stochastic – bullish
-MACD in + territory – bullish
-50 SMA pointing up like it wants to make sweet golden cross love to the 200 SMA - bullish
-divergence between last three days’ price action and MFI – pull back watch, still bull bias
The MFI still being under its ten period average, pointing down, and not having put in a high along with price today is screaming bull trap to me. I’d like to see a pull back to the bottom of the new channel near $8k in the next week or two. A pull back to the 200 SMA and some consolidation would work as well. MFI staying above 45ish would be even mo’ betta.
Consider that the weekly MACD is crossing bullish if you’re waiting on another gut wrenching low to pack your 2-3y bags. Not saying the market can’t do that, but it doesn’t seem probable. Even if it did I’d rather average down into it than give up my position at this point. I’m looking for a pull back with support at the bottom of the channel or for the market to take out this resistance level to take a long trade.
Good luck. Leave comments & questions below.
-strong daily close above the 200 SMA – bullish
-market trading above the 50 SMA – bullish
-higher lows on the slow stochastic – bullish
-MACD in + territory – bullish
-50 SMA pointing up like it wants to make sweet golden cross love to the 200 SMA - bullish
-divergence between last three days’ price action and MFI – pull back watch, still bull bias
The MFI still being under its ten period average, pointing down, and not having put in a high along with price today is screaming bull trap to me. I’d like to see a pull back to the bottom of the new channel near $8k in the next week or two. A pull back to the 200 SMA and some consolidation would work as well. MFI staying above 45ish would be even mo’ betta.
Consider that the weekly MACD is crossing bullish if you’re waiting on another gut wrenching low to pack your 2-3y bags. Not saying the market can’t do that, but it doesn’t seem probable. Even if it did I’d rather average down into it than give up my position at this point. I’m looking for a pull back with support at the bottom of the channel or for the market to take out this resistance level to take a long trade.
Good luck. Leave comments & questions below.