Good day traders,
For the record I’m bullish on this market based on my other ideas. There are too many bullish indicators both fundamentally and technically for me to be bearish. However, we know there are bears among us so let’s take a look at the possibilities from a bearish point of view.
Based on Elliott waves, we know we may have already completed the 4th wave of this third cycle. With that said, we’re looking for a 1-2 push with a significant pull back on the second wave to prepare for a strong third wave. Based on the pull back by (ii) I’d say we got what we’re looking for. With that said, we’re currently in wave (iii) which wave i of (iii) may have just finished since we do have a complete 5 wave. From here we should be looking for a 2nd wave retrace that should take us to either .618 or .786 of this first wave.
Our RSI trend confirms that there is room for some correction with bounce off the RSI so pricing can make its way higher. We also have just bounced off of the 200 day MA and the 10K psychological barrier. Our Heikin Ashi candle is printing a third bearish candle in a row with no upper shadow.
Ladies and gentlemen, we may have ourselves a temporary pull back towards 7700 as the bears take over briefly.
After that we should expect consistent gains with small periodic pull backs to reach the end of wave (iii) at roughly $34K at the end of this year. After which we should experience another short winter for wave (iv) until march or april of 2019 before the final push to wave (v) at roughly $50K
If you found this interesting or comical, feel free to let me know with a like or critical comments. I look forward to the dialogue. As always, good luck and stay safe!
Kinashi San
*For pure fun and joy, not financial advice. Not a recommendation to buy sell or hold.*
For the record I’m bullish on this market based on my other ideas. There are too many bullish indicators both fundamentally and technically for me to be bearish. However, we know there are bears among us so let’s take a look at the possibilities from a bearish point of view.
Based on Elliott waves, we know we may have already completed the 4th wave of this third cycle. With that said, we’re looking for a 1-2 push with a significant pull back on the second wave to prepare for a strong third wave. Based on the pull back by (ii) I’d say we got what we’re looking for. With that said, we’re currently in wave (iii) which wave i of (iii) may have just finished since we do have a complete 5 wave. From here we should be looking for a 2nd wave retrace that should take us to either .618 or .786 of this first wave.
Our RSI trend confirms that there is room for some correction with bounce off the RSI so pricing can make its way higher. We also have just bounced off of the 200 day MA and the 10K psychological barrier. Our Heikin Ashi candle is printing a third bearish candle in a row with no upper shadow.
Ladies and gentlemen, we may have ourselves a temporary pull back towards 7700 as the bears take over briefly.
After that we should expect consistent gains with small periodic pull backs to reach the end of wave (iii) at roughly $34K at the end of this year. After which we should experience another short winter for wave (iv) until march or april of 2019 before the final push to wave (v) at roughly $50K
If you found this interesting or comical, feel free to let me know with a like or critical comments. I look forward to the dialogue. As always, good luck and stay safe!
Kinashi San
*For pure fun and joy, not financial advice. Not a recommendation to buy sell or hold.*
Comment:
Bears have taken over in a big way. Red candles one after another. We're currently trading under the 100 Day MA, using the 200 4hr MA as support... but likely not for long
Comment:
We do have quite a bit of supports as we get lower... Hopefully 8K holds
Comment:
OK bears, time to take a break
