Yesterday I started to build a long position at $8,375. I entered ¼ of my position and waited for further confirmations. I was fully expecting a bullish crossover on the 12 & 26 day EMA’s (6 hour chart) and unfortunately that has failed to materialize.
We continued to pull back through both of the longer term bull trend lines (green dotted and orange solid) and now we are retesting the crucial area of $8,200. We just closed a textbook hammer doji and I expect to see a bounce from here.
I will be watching closely to see how much steem this bounce has behind it. If we resist $8,400 - $8,500 then it will be time to get out of this position. We need to create a new local high above $8,600 otherwise I expect us to come crashing down through $8,000. If we can establish a new local high then we should form a diamond bottom that would provide a nice base of support.
Until next time happy trading and go bulls!
We continued to pull back through both of the longer term bull trend lines (green dotted and orange solid) and now we are retesting the crucial area of $8,200. We just closed a textbook hammer doji and I expect to see a bounce from here.
I will be watching closely to see how much steem this bounce has behind it. If we resist $8,400 - $8,500 then it will be time to get out of this position. We need to create a new local high above $8,600 otherwise I expect us to come crashing down through $8,000. If we can establish a new local high then we should form a diamond bottom that would provide a nice base of support.
Until next time happy trading and go bulls!
Comment:
A stop loss has been set at $8,097 in the event that we do not get a bounce from here
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