I spotted a potential while trying to figure out the next steps if the breakout fails. It was a solid breakout of the , but since the is pretty high across multiple timeframes, I'm not 100% confident that it has the momentum to continue. The isn't quite convincing enough either.
So now we have some things to look for as signs of which way it's going to go:
1) It bounces off the boundary/1hr
2) Stochastic/RSI gets lower without breaking the upper boundary
3) It continues upwards, with buy picking up
1) It breaks back through the boundary and stays below it
2) It gets lower than the previous low of about $1715
3) It breaks the boundary and the hasn't bottomed out
I put a couple potential targets on the chart for each scenario.
Will update if I see anything significant!
The first is that it bounced off the target for this Inverse Head & Shoulders:
My final thoughts unless something unexpected happens:
Wait for the stochastic / rsi to get lower on the shorter timeframes, and as long as we don't break back down into that wedge, buy if it breaks that green neckline again with good volume.
I'll be back to update if something major happens.
Plus the RSI is very high and starting to fall - and there's a bearish divergence. We also haven't broken the volume trendline yet.
So it seems like the next few candles will make or break this pattern.
I still don't feel strongly enough about either scenario yet and I have to go to sleep - so I'm not going long but I'm going to set buy orders near the previous low (around $1670).
Broke through the wedge on Bitfinex, Bitstamp is about there right now, and it's in a new Descending Expanding Wedge.
This now looks like a Dead Cat Bounce, and I see 2 targets.
Here's the new idea:
I think if we haven't broken back down into the wedge by an hour and a half from now the Wolfe Wave is invalidated.
Doesn't mean it won't try to test the top of the wedge though - just keep an eye out. I think going below the wedge in any case = bad news, whether it's following one of these patterns or not.