Good morning, traders. We did see a bit of movement this weekend, which we will be taking a look at on this H1 chart. As I warned during Friday's live stream, traders had to be aware of the $3780 area as possible resistance, even though the target based on the triangle was higher. Sure enough, price was rejected at $3774 and then printed a bullish SFP at $3470 creating the possible second LPS (similar to Wyckoff Accumulation Schematic #2) which I suggested was likely to happen if price was rejected as it was. This is an important area because if we see upward movement from here, then the odds are most likely that we will see those upper $4000 and $5000 targets. Price appears to be building quite the support at the bottom of the blue TR around $3470.
In terms of the local yellow TR, the recent bullish SFP appears to be a Spring (similar to the much more common Accumulation Schematic #1). We can see volume dropping off significantly from the SC suggesting that supply is exhausted. Price has moved out of oversold and is currently attempting to move through the McGinley Dynamic as it targets the pivot. As always, a close above the pivot should be considered bullish on this TF. We should expect price to print another LPS, most likely around the pivot, after pushing above it, and then an SOS at the dashed yellow line with a BUEC/LPS between that and the solid yellow line denoting the top of the TR. An SOS targeting the R2 pivot/descending green resistance line of the large flag should follow.
Failure for price to follow through as described will likely see it targeting the S2 pivot at $3290 followed by the S4 pviot at $2930. This would print a Spring on the larger blue TR which should then see price pushing toward those $4000 and $5000 targets. I have outlined the possible two paths on the D1 chart, one in yellow and the other in orange. These are the same paths we've been watching play out for the past month or so. These appear to be the two most likely paths that price will take, however traders should not discount the possibility of price falling toward $2500 or lower. Currently, RSI does not appear to support such a move, but traders need to remain vigilant.
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
In terms of the local yellow TR, the recent bullish SFP appears to be a Spring (similar to the much more common Accumulation Schematic #1). We can see volume dropping off significantly from the SC suggesting that supply is exhausted. Price has moved out of oversold and is currently attempting to move through the McGinley Dynamic as it targets the pivot. As always, a close above the pivot should be considered bullish on this TF. We should expect price to print another LPS, most likely around the pivot, after pushing above it, and then an SOS at the dashed yellow line with a BUEC/LPS between that and the solid yellow line denoting the top of the TR. An SOS targeting the R2 pivot/descending green resistance line of the large flag should follow.
Failure for price to follow through as described will likely see it targeting the S2 pivot at $3290 followed by the S4 pviot at $2930. This would print a Spring on the larger blue TR which should then see price pushing toward those $4000 and $5000 targets. I have outlined the possible two paths on the D1 chart, one in yellow and the other in orange. These are the same paths we've been watching play out for the past month or so. These appear to be the two most likely paths that price will take, however traders should not discount the possibility of price falling toward $2500 or lower. Currently, RSI does not appear to support such a move, but traders need to remain vigilant.
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.