Jumping off yesterdays chart. We continue to follow the pattern as expected. Yesterday we watched for brief consolidation and then wanted to see the push up towards our next two resistance points of $6777 and $6823. Bulls barely got above the first and topped out at $6787 before heading back down. Currently $6570 appears to be our newest higher low. Positive in the fact that it is a higher low. Negative and what I viewed as a first red flag of this bounce is we did see an uptick in bearish volume. Generally when we see the consolidation, we want to see declining bear volume to give nice healthy consolidation, cooling off RSIs, etc before running up again.
Zooming out to the daily chart and thus far it is a lower high as $6823 was our high to beat on daily. Low to hold on daily is down at $6320. So bulls need to either see continuation to higher highs and avoid a lower high here and the beginning of consolidation on daily chart.
Weekly remains extremely healthy in the equilibrium pattern we have been watching for several weeks now. We have seen 3 consecutive higher lows and ideally want to see a break to higher highs. Personally I do want to see weekly have one more lower high (compared to $7403), then set a higher low (compared to $6106) and then break to higher highs on weekly for the first time this year.
Just My 2 Sats!
