We have broken down from a bearflag & through a big support li
The old adam and eve neckline we broke up from before was holding very strong support after the bearflag breakdown but could only hold for so long before it gave way. Are next 3 big supports are 7.3k the 4hr 200ma(shown here in blue) the 1 day 50ma and the 7k psychological. The bearflag breakdown target could send us all the way to 6.9 or even upper 6.8k. However I am hopefully that either the 200 on the 4hr chart or the 50 on the 1 day chart will provide us our much needed bounce. if we break under 7.2k however then 6.8-6.9 becomes a real possibility.
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My guess is our bounce support will be found where the 1day 50ma (shown here in orange) and the bottom trendline of the handle for the potential cup and handle(shown in red) converge is where we will ultimately find our bounce supprot it lines up exactly with the projected bear flag breakdown ----> s3.amazonaws.com/tra...shots/9/9bVCdeE9.png
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$6896
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we are seeing the bulls put up a nice fight and also bullish divergence on the 4hr chart. we are also seeing a reversal pattern of an ascending triangle in a downtrend. Because the triangle is ascending it has a bigger chance of all continuation patterns of breaking up in a downtrend...however as a continuation pattern it can also break down sometimes. this coupled with the bullish divergence on the 4hr suggest we may break up...in doing so we will have formed our higher low on the 1day and our lower low on the 4hr chart finally....both possibilities have decent probability so until the breakout I'm neutral.
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came very close to hitting the $6872 price drop target here.