Possible long entry scenario - Were due for a retrace after yesterday. We found close to no resistance between 8.3k-8k. Specified in yesterdays post. We closed over 8k, therefore I'm considering the uptrend now. (also reinforced with your last message) So even with a nice red day if 8k could hold us this long scenario may play out nicely.
Confirmations of this idea - Starting with reasons for the retracement - 8.4k range is strong resistance dating back to 2017. EZ short scalp due to bulls not showing up this morning and good risk reward because of downtrend channel. Rejection of 8.4k range has happened twice and on the second rejection it was a lower high. RSI almost into overbought. Stoch RSI at 100.00 (where bears have took over each time). Volume is now declining (along with every time we have rapid volume follow a rapid decline).
Reasons for to long this scenario - MACD has been putting in higher lows since Nov. We have been accumulating bulls since the beginning of the correction in Nov. Last years bullish run only had one accumulation phase, this year we've had three accumulation phases - indicates there's a lot of bull ammunition left to use. 8k range is pretty strong, we've seen it as resistance throughout the past few months due to the downtrend - turning this resistance into support would b very beneficial for bulls. Not much resistance between 8-8.4k (there are a couple levels that would need to be monitored during move but the past two days bulls handle these levels EZ) - other reasons ( not technical and possible illogical ) - good time for big money to get there shorts in after two days of longs. Could EZ liquidate a lot of longs here on the way back down to 8k, as everyone is very excited and a lot of volume has shown in the past two days allows a lot of liquidating opportunity. News of halving and war has been foaming at the mouth.
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Confirmations of this idea - Starting with reasons for the retracement - 8.4k range is strong resistance dating back to 2017. EZ short scalp due to bulls not showing up this morning and good risk reward because of downtrend channel. Rejection of 8.4k range has happened twice and on the second rejection it was a lower high. RSI almost into overbought. Stoch RSI at 100.00 (where bears have took over each time). Volume is now declining (along with every time we have rapid volume follow a rapid decline).
Reasons for to long this scenario - MACD has been putting in higher lows since Nov. We have been accumulating bulls since the beginning of the correction in Nov. Last years bullish run only had one accumulation phase, this year we've had three accumulation phases - indicates there's a lot of bull ammunition left to use. 8k range is pretty strong, we've seen it as resistance throughout the past few months due to the downtrend - turning this resistance into support would b very beneficial for bulls. Not much resistance between 8-8.4k (there are a couple levels that would need to be monitored during move but the past two days bulls handle these levels EZ) - other reasons ( not technical and possible illogical ) - good time for big money to get there shorts in after two days of longs. Could EZ liquidate a lot of longs here on the way back down to 8k, as everyone is very excited and a lot of volume has shown in the past two days allows a lot of liquidating opportunity. News of halving and war has been foaming at the mouth.
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