Stay with me as I explain the various indicators on the analysis, I realize it looks messy sometimes but the indicators are there for a reason.
Daily (Main chart above)
I am not exactly going to call this a divergence on the , but this is at a level I am not comfortable with. The rapid rise with very little price movement is worrisome, especially compared to prior support touches. However, as I have stated before, we make our strongest moves when the is in extreme scenarios. (Check the video on this same idea for examples, link is at the bottom)
The GMMA (Guppy Multiple Moving Average) is showing some trend weakness for the bulls.
6 Hour (Below)
Taking a look at the OBV on multiple time frames, it is concerning to me. OBV action is at levels that are typically indicative of a lower price.
The GMMA shows a weakening trend.
Currently we rest on the bottom of the Kumo ( ) and Tenkan-sen (Conversion Line in orange).
3 Hour (Below)
On the T.D. Sequential we see a perfect buy signal. The low of bars 8 & 9 are lower than the low of bar 6 and bar 7 typically indicating a exhaustion cycle is completed.
Sell pressure on the C.M.F. is heavy, also note that we sit right below the 50 period moving average.
Keeping an eye out for a bottom here. Lets move down to examine all of this on smaller time frames.
2 Hour (Below)
is looking prime here compared to past levels with the current price action. Also, note we see a red 8 on the T.D. Sequential.
Kumo ( ) and the Kijun-sen (Base Line in pink) acting as a support touch.
1 Hour (Below)
Examining this trend very closely with the , we don't reach this level ever without making a move. The has been fairly reliable for spotting when these "Bart" patterns happen.
30 Minute and 15 Minute (Below)
No matter how I chop this, the OBV is at dangerous levels here. Let's consider this as we prep for a rally into resistance.
I set the candles to Heikin Ashi for this 15 minute example, Heikin Ashi allows me to get a clearer picture of the trend. We are seeing very solid similarities from June 4th. There is a bit of a different makeup but the similarities are too big to not look at.
Lots of conflicting data here... so let's sum up.
I don't believe the 15 minute above repeats.
Ideally I want to see a drop now to $7350; then a slow, steady push upwards without these "Bart" spike. But I don't always get what I want for a healthy market. That being said I believe we push up to the resistance level detailed below throughout this weekend. The market appears to be setting up for a very volatile push. Again, we need to see a solid spike entering into it and continuing throughout that range in order to breakout. I will update as we get close to that if time permits.
As unhealthy as this rally seems we need to see a heavy spike in buy pressure going into the resistance level ranging at $7,860 and $7,925. If we do not see a solid spike entering into it and continuing throughout that range then we can expect a drop back down to support. I am still under the belief that we need more consolidation before rallying up to the top of our Daily symmetrical triangle.
As a note, if we break below $7,500 I am invalidating that notion of a rally to resistance. At that point we retest $7350 and ultimately bottom support.
As the weekend goes on I will detail day trades I have enough time to publish.
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Video version of this analysis is here below. Slap a like on both for me. :)
A test of bottom support is still probable. I will give this an new analysis in the morning.
Who listened? Wiped within 30 hours. Full update coming later today.
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