Price broke through MA50, and base on the DMI and Stoch
divergence we are going to get bullish
on short term (hopefully). And MACD
is trying to break the zero line. But right now we are at the previous support this is a strong one that we need to break, based on the indicators there is a good chance to see a bullish
run (we are not bullish
yet but seems like bulls are trying to change the direction at least on short term for now). And it was 4 weeks that we were below MA50 but now we are above it again. its unlikely that the MA50 fails to support the price (but there is a chance that price test it). Usually MA50 is a strong support/resistance
, and we had a good break here, that's why it will probably hold the price (although its not confirmed unless the price tests it).
To conclude the obstacle right now is the previous support line (red line) that we need to break, after breaking it we will probably go to the upper bond of support area
as mentioned in part-4 (~$6850), and after breaking that one we will probably see a bull run.
Remember that "The stock market is a device for transferring money from the impatient to the patient."