Current Outlook
1-2 weeks: neutral-bullish
2 weeks - 12 months: bearish
1-2+ years: Super bullish
Yesterday we went over the reasons why I changed my short term outlook to neutral/bullish for the next 1-2 weeks and today we will narrow in on how far this bounce can go. The last 4 hour candle challenged the resistance cluster at $6,724 and appears to have failed. Resistance came horizontally and from the 200 period MA.
We briefly rallied through before getting shot back down below both points of resistance. The current candle is continuing the pullback and if it fails to support above $6,250 then this bounce will have likely run it’s course.
While the 4 hour chart is looking fairly ugly, the higher time frames still look just fine. The rest of this post will be looking at the daily chart, which still shows plenty of room left to rally.
The daily Ichimoku Cloud shows two key areas of resistance: the Kijun-sen at $7,845 and the bottom of the cloud at $8,045
The TD Sequential is showing a green 5 out of 9 with major resistance at $7,700 (green dotted).
The Visible Range Volume Profile is showing resistance stacked up from here to $8,600 with $8,150 being the most significant.
When multiple indicators are painting the same picture it is usually time to make a big bet. Building a short from $7,770 - $8,150 with stop loss at $8,650 looks like a really good position.
Before than can happen we need to rally through $6,800 and $7,000 resistance. With how bearish this market has been that will be much easier said than done. If we create a new low below $6,250 then I will expect the drawdown to continue before we are able to retest the major areas of resistance outlined above.
Thank you for reading and have a Happy Independence Day! Until next time drink responsibly, eat heartily, be social and smash the follow!
1-2 weeks: neutral-bullish
2 weeks - 12 months: bearish
1-2+ years: Super bullish
Yesterday we went over the reasons why I changed my short term outlook to neutral/bullish for the next 1-2 weeks and today we will narrow in on how far this bounce can go. The last 4 hour candle challenged the resistance cluster at $6,724 and appears to have failed. Resistance came horizontally and from the 200 period MA.
We briefly rallied through before getting shot back down below both points of resistance. The current candle is continuing the pullback and if it fails to support above $6,250 then this bounce will have likely run it’s course.
While the 4 hour chart is looking fairly ugly, the higher time frames still look just fine. The rest of this post will be looking at the daily chart, which still shows plenty of room left to rally.
The daily Ichimoku Cloud shows two key areas of resistance: the Kijun-sen at $7,845 and the bottom of the cloud at $8,045
The TD Sequential is showing a green 5 out of 9 with major resistance at $7,700 (green dotted).
The Visible Range Volume Profile is showing resistance stacked up from here to $8,600 with $8,150 being the most significant.
When multiple indicators are painting the same picture it is usually time to make a big bet. Building a short from $7,770 - $8,150 with stop loss at $8,650 looks like a really good position.
Before than can happen we need to rally through $6,800 and $7,000 resistance. With how bearish this market has been that will be much easier said than done. If we create a new low below $6,250 then I will expect the drawdown to continue before we are able to retest the major areas of resistance outlined above.
Thank you for reading and have a Happy Independence Day! Until next time drink responsibly, eat heartily, be social and smash the follow!
emasar Indicator is available for purchase at alphanalysis.io/product/emasar/