Broke Channel
After posting yesterday I thought we'd hit the bottom around the .618 line and saw some Bullish Divergence on the MACD & RSI, after continually testing the trend lines on the shorter time frames, we managed to really break out overnight (AEST time) and have slowed up near a resistance line at $10.4K.
Purple 5 wave up at this point is really a guesstimate until we get some confirmation of Wave 2 taking shape but, fits in with some target areas along the way which are discussed later on.
Long term downtrend & Resistance zones
On the bigger picture, this run up is littered with some resistance areas which you can see at various points during our parabolic run and retrace.
The Target box would see us break out of this downtrend which would be great for another serious Bull run however, if we break out it doesn't mean we can't break back into the channel very quickly shortly after.
Head & Shoulders $17K?!
On the 6 hour chart, we can see and inverted Head & Shoulders potentially taking shape (and would if it follows the uptrend), now we've seen numerous of these as of late however, we did see a smaller one on the last smaller 5 leg run up take shape and we did only fall around $350 short of the full target area which is something to keep in mind.
Target Zones
$11.8K - First stop for me, here I'll be most likely closing my long position, this would bring wave 5 onto equal with wave 3 on the white 5 leg up, as soon as we're equal with Wave 3 this is still considered a 'complete' cycle
$12.4K - This would be completion of the ABCD leg to 1.276 ratio, again another valid pattern - I'll be watching with interest on the lower time frames for this
$12.9K - Complete assumption at this point due to no real indication on the end point of Wave 1 on the smaller Purple leg, but fits in with ABCD patterns.
$13.3K - Would be full completion of ABCD Pattern shown in orange.
$17.6K - Head & Shoulders completion, far far away dreams for now...
Still extremely green to this but, doing my best to always learn and get better.
Constructive feedback always welcome.
Purple 5 wave up at this point is really a guesstimate until we get some confirmation of Wave 2 taking shape but, fits in with some target areas along the way which are discussed later on.
Long term downtrend & Resistance zones
The Target box would see us break out of this downtrend which would be great for another serious Bull run however, if we break out it doesn't mean we can't break back into the channel very quickly shortly after.
Head & Shoulders $17K?!
Target Zones
$12.4K - This would be completion of the ABCD leg to 1.276 ratio, again another valid pattern - I'll be watching with interest on the lower time frames for this
$12.9K - Complete assumption at this point due to no real indication on the end point of Wave 1 on the smaller Purple leg, but fits in with ABCD patterns.
$13.3K - Would be full completion of ABCD Pattern shown in orange.
$17.6K - Head & Shoulders completion, far far away dreams for now...
Still extremely green to this but, doing my best to always learn and get better.
Constructive feedback always welcome.