When the price bounced from SMA200, it gave us good buy opportunities based on different timeframes. We got the signals confirming the uptrend and the market made a good upward movement. If you missed those opportunities, it was easy to do as many experts wrote about further falling, now it's time to think about when to buy.
As we have trend market conditions, we have to follow the rules of trading in such market conditions. The best signals for joining to a trend are reversal signals after correction movements. As we have the impulse wave, we will have to wait for a correction and based on a reversal signal we should buy.
If we look at the indicators, they provide us solid signals. histogram supports buyers and the same goes about lines. DMI is with line moving upward. It tells us that buyers become stronger and we have the trend market conditions.
We have the strong signals but it means nothing now. The price is at the strong where we should expect the reversal and further correction. I wrote about it in several posts and you can find these posts in the related ideas.
The is strong and it can stop and reverse the price. The zone is formed by the strong 6000.00, SMA100 which acts now like a resistance line. This zone is good for bouncing and such movement will be absolutely logical in the structure.
For the further upward movement the market will need strong fundamental news, but as far as I can see we don't have them right now. From this point of view, the market has the right time for the correction movement. Another signal we will be able to get from , which is not far from the overbought zone.
Will the market bounce from 6000.00 during this week or we will have an attempt to move higher and bounce from SMA100? Will it be during the several weeks? We will see. But the main idea of the post is - in spite of strong signals, the correction movement will be more logical and it should be used for buying based on confirmed reversal signals.
And what do you think about the price movements during the nearest several weeks? Please, share your thoughts in comments! Let's discuss!
- This is the first test. It needs two or three times to test to break this resistance.
- Low volume with higher price
- We're seeing bearish divergences in the RSI , the MACD , Stochastics, Volume , ...
- Strong support at 5380$
Please take a look at our idea and let us know what you think!
Mt. Gox 2.0