Over the past four days I have been calling for a bounce to $7,950. That is due to being oversold across the board. We haven’t been this far below the 12 & 26 day EMA’s on the daily chart in about 2 months.
The alternative to a bounce is finding a range that would lead up back to equilibrium. We have been ranging on top of my longer term bull trend (green dotted) since the 24th. It looks like we could be breaking down through that area of support as we speak.
I have re evaluated the charts, using longer time frames and still feel confident that we are in for a bounce.
The Stochastic on the daily has not been this oversold since 8/18/2015 when the price was $209.
We had recently broken out from the multiyear down trend and pulled back for a retest of that trend (chart below). 5 weeks later the price was up over 100%.
On the other hand, the triangle that started forming on 2/6 has been 66% completed and a breakout is expected to occur any day. If the daily closes under $7,215 then I would consider the triangle broken down and it could get bloody sooner rather than later.
I am still waiting on the sidelines until the triangle breaks.
Until then happy trading and go bulls!
Don't forget that following is always free!
The alternative to a bounce is finding a range that would lead up back to equilibrium. We have been ranging on top of my longer term bull trend (green dotted) since the 24th. It looks like we could be breaking down through that area of support as we speak.
I have re evaluated the charts, using longer time frames and still feel confident that we are in for a bounce.
The Stochastic on the daily has not been this oversold since 8/18/2015 when the price was $209.
We had recently broken out from the multiyear down trend and pulled back for a retest of that trend (chart below). 5 weeks later the price was up over 100%.
On the other hand, the triangle that started forming on 2/6 has been 66% completed and a breakout is expected to occur any day. If the daily closes under $7,215 then I would consider the triangle broken down and it could get bloody sooner rather than later.
I am still waiting on the sidelines until the triangle breaks.
Until then happy trading and go bulls!
Don't forget that following is always free!
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