Comment: Update 10-13, 17:36 UTC
The 4 hour Stoch (100) indicates a limited dip within the next few hours. RSI will likely limit the dip, as its currently low (35~)and rebound. Supporting bulls, is heavy buy volume on the last 2 wicks that attempted 6150 and below.
Bears: If we are going to break support it is likely to happen here.
Bulls: This would be a great place to long, with a tight stop that is lower.
ORIGINAL CHART:
Hi fellow guys.
I warned of this drop in the Trollbox and posted my position as short at 6530 as some of you recall.
Sell pressure broke the Triangle here, and we dropped the vertical length of the triangle at the time of the breakage, which leads us to support 6100. This was a pretty clear textbook scenario which also was supported by Stoch and RSI lining up. This gave me a clear signal to short.
From here there are 2 scenarios depending on if you are bearish or bullish . Please note: (the blue line for daily support, should be moved UP to 6000.)
Bull case: #1 We return up and bounce. We will eventually retest daily Triangle high ( about 6800- lower 7k). We break that triangle and the MEGA COBRA is released. We will likely see sideways before another significant move.
Bear Case: #2. We sideways for a bit near support (6100) and breach. We move down rapidly up and down between 5700-6100 violently for a duration of time, with a possible boring sideways movement before the final break of daily support. Here we will look for a similar formation we saw today. Note that the blue line goes through a support zone , and its not an EXACT support level . Having a ZONE AREA for support should be considered over an exact PRICE for trading purposes.
Extended Senario #3. A bit on the dark-side however look at this chart. Keep it in mind as an exit point bears for group #2. i.imgur.com/lZKAg8q.png
Enjoy and Beware.
The 4 hour Stoch (100) indicates a limited dip within the next few hours. RSI will likely limit the dip, as its currently low (35~)and rebound. Supporting bulls, is heavy buy volume on the last 2 wicks that attempted 6150 and below.
Bears: If we are going to break support it is likely to happen here.
Bulls: This would be a great place to long, with a tight stop that is lower.
ORIGINAL CHART:
Hi fellow guys.
I warned of this drop in the Trollbox and posted my position as short at 6530 as some of you recall.
Sell pressure broke the Triangle here, and we dropped the vertical length of the triangle at the time of the breakage, which leads us to support 6100. This was a pretty clear textbook scenario which also was supported by Stoch and RSI lining up. This gave me a clear signal to short.
From here there are 2 scenarios depending on if you are bearish or bullish . Please note: (the blue line for daily support, should be moved UP to 6000.)
Bull case: #1 We return up and bounce. We will eventually retest daily Triangle high ( about 6800- lower 7k). We break that triangle and the MEGA COBRA is released. We will likely see sideways before another significant move.
Bear Case: #2. We sideways for a bit near support (6100) and breach. We move down rapidly up and down between 5700-6100 violently for a duration of time, with a possible boring sideways movement before the final break of daily support. Here we will look for a similar formation we saw today. Note that the blue line goes through a support zone , and its not an EXACT support level . Having a ZONE AREA for support should be considered over an exact PRICE for trading purposes.
Extended Senario #3. A bit on the dark-side however look at this chart. Keep it in mind as an exit point bears for group #2. i.imgur.com/lZKAg8q.png
Enjoy and Beware.