1day candle closes as green spinning top confirming breakout
Today's 1 day candle has closed as a green spinning top giving us a confirmed breakout from the descending chqannel and also taking us another big step closer to having a valid massive inverted head and shoulders pattern. The Galaga Battleship is nearing completion and readying itself for blastoff....will have to break the neckline and have both a 4hr candle c lose above it and a big influx of volume to go with it..although leading up to a confirmed inverted head and shoulder we usually see volume placate during the forming of the second shoulder, however right after we break the neckline you should see a healthy increase in bullish volume. I'm thinking we should see a break above the neckline by the 5th or the 6th but that is just a guess there could be plenty of sideways price movement to extend that a few day longer and it could also happen even quicker than my projection. I'm still confident it will happen...but until you see a break above the neckline and close above it as well (around 11700) then there is not yet a valid pattern. Currently on the gdax order book we can see that at 11120 there is a huge sell wall of 300 coins and surounding that on either side are 100 coin orders and just above and below those orders of 50 coins or greater....collectively that should be enough to keep the price at bay and under that number for at least a few bounces....I've seen orders of only 12-20 coins go up against 100+ coin walls though recently and find ways to grow large enough in the moment to overcome them...so there's still a chance they could overcome that wall at 11120 as early as tonight...but for now it's forming very strong resistance.
Comment:
The price just plowed through the 300 coin buy wall and is inching ever closer to the neckline. We are now above the "Buy/Sell Line" (the 50 Simple moving average) So while we are above the 50 SMA you want to only look at the market from a buyers perspective and when tis under the 50 SMA you look at it from only a sellers perspective.
Comment:
Current line of resistance on the normal chart is the lavender 23.60% fib line.
Comment:
Bulls are relentless! Every big wall of resistance tonight they have cleared. Being above the buy sell line has sent them on a bullish rampage.
Comment:
Our next big hurdle will be at 11500 11400 has a hurdle as well but its nothing compared to thing walls the bulls have already cleared tonight. Both RSI and MAC D are giving nothing but buy signals at the moment, so the buyers certainly aren't tired yet.