Praise Tux the Penguin!
The last time the price formed an inverse head and shoulders pattern (white line in chart), we bounced off of the 50 week MA (curved white line in chart) and formed the final shoulder (Tux penguins). Maybe it could happen with the 200 week MA (blue line)? This would allow us to retest the 50 week MA as resistance, as it has not been tested since April. Is the 50 week average now support or resistance? To me, this is the question the price is trying to answer, hence I don't think longs are irrational, even here.
It's easy to see that if the price were to hit the golden ratio, everyone will be kicking themselves on how they didn't "see the move coming", but in reality a move like this is baked into the market and is not something anyone can see. I'm not really for chasing the wind or anything like that, but I think maybe this is now the most probable option until proven otherwise. Below 18500 should be considered invalidation of this idea. It also seems probable that the end of this final shoulder, if it is to exist, will carry us sideways or possibly below 18500 unless something fundamental changes.
What do you think? Absolute madness!? Are you even more bullish? Do you think it will go sideways?
Thanks for taking a look and don't forget to hedge your bets!
The last time the price formed an inverse head and shoulders pattern (white line in chart), we bounced off of the 50 week MA (curved white line in chart) and formed the final shoulder (Tux penguins). Maybe it could happen with the 200 week MA (blue line)? This would allow us to retest the 50 week MA as resistance, as it has not been tested since April. Is the 50 week average now support or resistance? To me, this is the question the price is trying to answer, hence I don't think longs are irrational, even here.
It's easy to see that if the price were to hit the golden ratio, everyone will be kicking themselves on how they didn't "see the move coming", but in reality a move like this is baked into the market and is not something anyone can see. I'm not really for chasing the wind or anything like that, but I think maybe this is now the most probable option until proven otherwise. Below 18500 should be considered invalidation of this idea. It also seems probable that the end of this final shoulder, if it is to exist, will carry us sideways or possibly below 18500 unless something fundamental changes.
What do you think? Absolute madness!? Are you even more bullish? Do you think it will go sideways?
Thanks for taking a look and don't forget to hedge your bets!
Comment:
It's getting closer to the arrows:
We should expect 2-5 weeks of settling down near the MA and establishing support if the market is to remain bullish, as was the case in 2018. If we drop below, abandon the idea!
We should expect 2-5 weeks of settling down near the MA and establishing support if the market is to remain bullish, as was the case in 2018. If we drop below, abandon the idea!
We should expect bad things if it does not carry out a similar structure.