Good morning, traders. It appears that we are getting some action this morning as price popped out of a few patterns and is testing the resistance of another. Tomorrow is the monthly close. This movement is not unexpected at all if you've been following my analysis. Price action and volume analysis across multiple TFs have suggested that this is the most likely movement, but can demand follow through? Price is now above the 21 EMA on the 4H chart once again, as well as being at the top of the HVN. It still remains a bit below the 4H pivot, though. So far, 4H RSI is trending within the ascending channel it printed. A fall through the channel support would most likely signal downward price progression. If the daily RSI pushes through its descending resistance, traders should be looking at higher targets.
There are four targets based on the patterns. The first is just above that pivot at $5265 and is based on the height of the red descending channel. The second is $5435 and will come into play once price exits through the purple ascending triangle's resistance. This second target is also at the ascending dotted channel's EQ. The third is $5660 and is based on the height of the red descending broadening wedge. This third target also puts price at the November 18th high which is important because continued movement above it sets into motion the possibility of liquidating the shorts initiated there at that time. The fourth target is at $5918 and is based on the height of the large blue TR, but will not activate until price closes above that upper blue horizontal line at the top of the TR. Will price make it to that fourth target and then be rejected, or will it continue toward $6300 and get rejected at the HVN? Nobody knows for sure, but the HVN argument makes a lot of sense. I have explained the higher targets over the past few weeks so feel free to look back through my previous analysis.
The possible checkmate pattern that I discussed yesterday should have price targeting the $5510 level, where it began, if it plays out. After the recent high almost taking out the whole of supply in that area, it doesn't seem likely that there will be enough supply there to suppress price if it gets to that level. The is a lot of defending of the $5200-$5300 level still happening suggesting that there are possibly some strongly over-leveraged shorts sitting just above. A sudden move above $5300 might just set them off causing a small squeeze toward the other cluster of shorts in the $5600 area which could lead to a much larger squeeze. However, the longer it takes price to get moving up that way, the less likely the squeeze becomes as traders start getting nervous and exiting their short positions.
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.
There are four targets based on the patterns. The first is just above that pivot at $5265 and is based on the height of the red descending channel. The second is $5435 and will come into play once price exits through the purple ascending triangle's resistance. This second target is also at the ascending dotted channel's EQ. The third is $5660 and is based on the height of the red descending broadening wedge. This third target also puts price at the November 18th high which is important because continued movement above it sets into motion the possibility of liquidating the shorts initiated there at that time. The fourth target is at $5918 and is based on the height of the large blue TR, but will not activate until price closes above that upper blue horizontal line at the top of the TR. Will price make it to that fourth target and then be rejected, or will it continue toward $6300 and get rejected at the HVN? Nobody knows for sure, but the HVN argument makes a lot of sense. I have explained the higher targets over the past few weeks so feel free to look back through my previous analysis.
The possible checkmate pattern that I discussed yesterday should have price targeting the $5510 level, where it began, if it plays out. After the recent high almost taking out the whole of supply in that area, it doesn't seem likely that there will be enough supply there to suppress price if it gets to that level. The is a lot of defending of the $5200-$5300 level still happening suggesting that there are possibly some strongly over-leveraged shorts sitting just above. A sudden move above $5300 might just set them off causing a small squeeze toward the other cluster of shorts in the $5600 area which could lead to a much larger squeeze. However, the longer it takes price to get moving up that way, the less likely the squeeze becomes as traders start getting nervous and exiting their short positions.
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.
