Good morning, traders. The bullish divergence I mentioned yesterday is playing out nicely today as price has made a good $100+ move up this morning with the daily candle currently engulfing the previous four days' candles and sitting above the daily pivot and 21 EMA. This has many of the smaller TFs overbought at this time with the H4 RSI not quite there yet, so we may see a bit of a pullback before further advancement. Daily RSI bounced off the horizontal support I mentioned yesterday and the H1 and H4 RSIs pushed through their respective diagonal resistances.
Price is now sitting above the diagonal S/R line and the H4 and D1 HVNs. I am watching for a close above the February 28th swing high at $3897.62 to suggest further upward momentum. The February 27th swing low at $3658.19 is the level at which a close below suggests further downward momentum.
While everyone else seems to be screaming that the sky is falling, the D1 chart shows us that nothing unexpected has happened since February 18th. Price closed above the descending channel's resistance and then pushed up into the overhead supply. At that point, it was rejected and price then tested the descending channel's resistance as support (which also happens to be the same level as the HVN). Price is now pushing back up out of that HVN after successfully testing resistance as support, and the next move up should have price targeting the next higher supply zone between $4349 and $4635. As always, I look for price to initially end up around the zone's EQ which, in this case, is $4480/$4485. However, before that, I am currently expecting price to tap the R1 pivot/descending ATH S/R line, pull back slightly, and then push through toward that target. It is possible that we see price continue past that target without stopping if enough interest is generated in the push through the ATH S/R line.
Ultimately, I'm looking for a target of $4940-$5070 as this larger, potential wave 3, completes, with the possibility of an extension up to the EQ of the orange zone/R4 pivot at $5440-$5510. These targets are generalized and will likely require refinement if price moves up as expected. Right now, we want to see the $3765-$3800 area hold as support to increase the likelihood of continued demand pressure on price.
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.
Remember, 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.
Price is now sitting above the diagonal S/R line and the H4 and D1 HVNs. I am watching for a close above the February 28th swing high at $3897.62 to suggest further upward momentum. The February 27th swing low at $3658.19 is the level at which a close below suggests further downward momentum.
While everyone else seems to be screaming that the sky is falling, the D1 chart shows us that nothing unexpected has happened since February 18th. Price closed above the descending channel's resistance and then pushed up into the overhead supply. At that point, it was rejected and price then tested the descending channel's resistance as support (which also happens to be the same level as the HVN). Price is now pushing back up out of that HVN after successfully testing resistance as support, and the next move up should have price targeting the next higher supply zone between $4349 and $4635. As always, I look for price to initially end up around the zone's EQ which, in this case, is $4480/$4485. However, before that, I am currently expecting price to tap the R1 pivot/descending ATH S/R line, pull back slightly, and then push through toward that target. It is possible that we see price continue past that target without stopping if enough interest is generated in the push through the ATH S/R line.
Ultimately, I'm looking for a target of $4940-$5070 as this larger, potential wave 3, completes, with the possibility of an extension up to the EQ of the orange zone/R4 pivot at $5440-$5510. These targets are generalized and will likely require refinement if price moves up as expected. Right now, we want to see the $3765-$3800 area hold as support to increase the likelihood of continued demand pressure on price.
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.
Remember, 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.
