In this TA i want to explain why we need a big correction. In my last idea i wrote about that there will be a big correction soon because of the overbought weekly Stochastic RSI, the RSI is still overbougt and there are some signs that the price will drop in the next weeks.
As you can see i have 4 points that i want to talk about:
First of all we have a overbought Stochastic RSI and that means the we need a sell-off, in the last overbought levels we had a drop of minimum 30% in one week, so if the drop begins then we can see a big correction.
Second: There is a dropping volume in the last two weeks and thats often not a good thing.
Third: We can see that since may 2018 the 20MA is a big resistance and we can also see that in the last days the upwards movement was rejected by the 20MA and because we don't have the volume there is almost no possibility to break the resistance.
And at last we have a ongoing 60 days cycle, we are now at day 47 the average since june 2018 is 57 so maybe we can see a bottom in two weeks :)
Comment
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My first target is around 3700 but i don’t think it will stay for a long time. I still believe that the price will drop below 3000 in de coming weeks.
Yes it's certainly a valid scenario however if the price was to drop below 3200 - 3000 level then we would be looking at sub 2000 as next stop. Ties in well with the November 2018 sell off.
MartinChoneau
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what is your target?
EO1
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One thing is for sure, free fall ahead or with other words capitulation.
c_c
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One other thing is even more certain: The 20MA is a 140MA :D