Good morning, traders. Nothing has changed since yesterday's update. My expectation remains to see price targeting the green daily supply/R2 pivot/descending resistance area and ultimately $12000+. At this point, the H4 chart shows us that the only thing that has happened is that price has been consolidating at the local TR's resistance/R1 pivot as we would generally expect after a Spring below the TR's support. In terms of volume and candle spread, we saw them both expand as price rose and we are seeing them contract as price pulls back and consolidates, suggesting further moves to the upside. H4 Stoch RSI bounced off the bottom of oversold and is attempting to cross bullishly. H4 RSI remains bullish at 64.5 and is curling up.
Zooming out to the daily, overall volume has continued to contract as price consolidates. This adds support for the thesis that a possible ABCDE triangle may be printing. If that's the case, then we should expect a move to the descending resistance to complete the D leg and an ABC pullback to complete the E leg. After that, volume should begin expanding and candle spread increasing, especially as price crosses the descending resistance. After more than two months of consolidation, this could lead to quite a pop so traders should be paying attention. Daily Stoch RSI is overbought, however it can remains so for quite a while. On the previous move up it remains overbought as price rose 50%.
All this being as it is, price has not definitively made a move in either direction so traders must remain cautious as this consolidation comes to an end. Remember, we don't trade what we want to happen, we trade what the chart says is most likely to happen at that time, and then we make sure to employ strong risk management in case we are wrong. If you are trading any other way, then you will lose much more money than you ever make in the market. In this case, the larger picture is the 2+ month consolidation. Confirmation of price's movement out of the consolidation should be the trigger to enter, not what's happening inside the consolidation. If trading right now, then you should be concentrating on shorter TFs and looking for smaller profits.
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Be sure to hit the "thumbs up!"
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
You can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own. When you do, be sure to explore the other TFs to see what I'm watching on those TFs.
Zooming out to the daily, overall volume has continued to contract as price consolidates. This adds support for the thesis that a possible ABCDE triangle may be printing. If that's the case, then we should expect a move to the descending resistance to complete the D leg and an ABC pullback to complete the E leg. After that, volume should begin expanding and candle spread increasing, especially as price crosses the descending resistance. After more than two months of consolidation, this could lead to quite a pop so traders should be paying attention. Daily Stoch RSI is overbought, however it can remains so for quite a while. On the previous move up it remains overbought as price rose 50%.
All this being as it is, price has not definitively made a move in either direction so traders must remain cautious as this consolidation comes to an end. Remember, we don't trade what we want to happen, we trade what the chart says is most likely to happen at that time, and then we make sure to employ strong risk management in case we are wrong. If you are trading any other way, then you will lose much more money than you ever make in the market. In this case, the larger picture is the 2+ month consolidation. Confirmation of price's movement out of the consolidation should be the trigger to enter, not what's happening inside the consolidation. If trading right now, then you should be concentrating on shorter TFs and looking for smaller profits.
____________________________________
Be sure to hit the "thumbs up!"
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
You can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own. When you do, be sure to explore the other TFs to see what I'm watching on those TFs.
Comment:
Daily
