The Death Cross I was warning about sent the price plummeting.
As I had said a couple days ago in a previous idea the death cross of the purple and blue moving average lines was dangerously close to occuring and would either cause a plummet in price or could potentially bounce off as well. The probability was much more highly in favor of the cross happening and at the beginning of the current days candle the 4hr chart 50EMA crossed under the 200EMA sending the price dpiraling downward. Major support happened at the 9200s region just as I was expecting and because of it we have seen a boucne back up. However the 50ema is still very much under the 200ema on the 4 hour so we need to see it reverse course soon if this inverted head and shoulders is going to become valid. The current bounce looks good on the 4 hour but the candlesticks on the daily seem to suggest a little more downside. On the 4 hour we got a nice green bullish reversal hammer though so hopefully the current 1 day candle will close as some sor t of doji. I still have hope for the head and shoulder pattern. Be cautious and try not to make any big moves at this time.
Comment:
we now have 3 4 hour candles bodies in a row bouncing off the yellow dotted trendline we found that trendline all the way back on the deepest dip of the 1st potential shoulder..for it to dip this consistantly increases the probability of a legitimate head and shoulder pattern quite a bit. the green one dipped all the way to the symetrical paralell slope of the neckline.
Comment:
the dotted yellow line was slanted downward but has now lined up with the 100% fib retracement extention line as a double enforced line of support. the price is currently bouncing back and forth between the tline as resistance and the 100%fib retrace/dotted yellow shoulder trendline combo as support line. I think being the 100% extension level this could essentially be our bottom folks...especially if it triggers the massive potential inverted head and shoulder pattern....however 9200s is still very possible to revisit in order to make the shoulder line truly parallel with the neckline.
Comment:
The price is currently rebounding well and seems like it will at least wick above the t line if not assume the t line as new support...safe to ladder in with tight stop losses.
Comment:
the price has decided to dip down towards the white dotted line again...it never actually hit the dotted white line the first time befpre reversing back upward last time...this time it may actually reach the dotted white line...if it reverses course before it hit's the white line and does so around the same spot where the last closest candle did, at that point we have a double bottom on the 4 hour which could bring enough upward momentum that we don't ever actually reach the dotted white line. The dotted white line is at the same descending angle as the potential inverted h & shoulders neckline which makes it a very possible spot that the price could find an ultimate rebound on...since it's on a downward slope though the more we move to the right the lower the potential we have fore the price to dip until it hits the line and rebounds....if it does drop down to bounce off that line today it would go as low as the 9100s. hopefully the price rebounds where the last red candle was and the double bottom momentum from that makes reaching the dotted white line uneccessary.