A bearish break down from the recent bullflag sent the price briefly plummeting and threatening to create a lower low by going under $8650 but the price was stopped just short of doing so at $8808 by the strong bounce support of the 1 week chart's tline(not shown but indicated here by the 100% fib extension). These 2 lines overlapping formed a double reinforced support and allowed for a very nice bounce which left a bottomwick there as it went upward until the body of the candle found support at a former longstanding trendline of strong support(in purple) sitting at 8900. . . from there with the rsi, stoch rsi, and mac d levels cooled off and having room to rise we have slowly pulled ourselves back above the 4hr chart's tline at $9056 (in yellow) and are using it as current support. It's crucial to keep this line as support as it is our best hope at continuing the bull climb. Now that we have closed several 4 hr candles under the 4hr 50MA (AKA Buy Sell Line) We are technically in a sellers market on the 4hr time frame. This usually leads to more downside as the path of least resistance...and with the bearish cross of the 8ema(tline) going under the 50MA that can lead to bearish price action as well of which we have already seen some of. The good news is, on the bigger 1 day chart...we are still well above the 1day buy sell line so on the daily we are still in a buyer's market...therefore with all the current strong support lines we have around the current price action, and because we are well above the 1 day chart's 50 MA, it is still very possible for us to find a way to climb back above the 4hr chart's buy/sell line as well. it won't be easy however because the price action is now forming a small rising wedge with a rounded bottom on the 4hr chart. Rising wedges are typically bearish patterns and tend to break down...it is for these collective reasons collectively that I am switching the current idea from long to neutral. I'm still holding my position but ready to ladder fractional shorts should we begin to break down. I have illustrated with green and red hyphenated/dotted trendlines how far one can expect a break down or up of the rising wedge. Lastly, important to note that the trajectory of the Eve line is still on target to converge with the double bottoms neckline on May 3rd. However a break down from this current rising wedge and any sort of prolonged fall could drastically change the projected date that the eve trendline will converge with it's neckline. Another reason we should hope we find a way back above the 4 hour 50ma soon because forming a few lower lows from here could potentially invalidate the adam and eve double bottom all together and absolutely no one wants that....which is why I think we may have a chance to break upwards. For now I will keep the idea neutral and do my best to be prepared and ready for either outcome. You choose your own path however, for this is not financial advice. Best of luck and thanks for reading!
Comment:
we can see an ascending triangle which can be bullish and may also be a bull flag on a smaller time frame, inside the rising wedge...so as is often the case we have a bull pattern cloaked in a bear pattern which typically tends to happen at crossroads pivotal points like this. s3.amazonaws.com/tra...shots/f/fyYMMNEu.png
Comment:
looking promising so far as price action has climbed bullishly up and out of both patterns...finding resistance at the 4hr 50MA BUY/SELL Line but hopefully if we can close this candle above both entangled bull/bear patterns we can get enough breakout momentum to put us back above the 50ma.
Comment:
s3.amazonaws.com/tra...shots/4/4ByxfoOb.png
ned to see a close above these patterns the 50ma will likely try to bounce the price action back into their boundaries.
ned to see a close above these patterns the 50ma will likely try to bounce the price action back into their boundaries.