Let's assume such a bullish spike was not expected. Let's consider the fact that it all started with a huge whale buy that took 5 seconds to complete. How can we factor the resulting chart into an acceptable TA ?
From an Elliott point of view, we could argue a corrective wave 4 upwards, which could end beautifully at the top of purple channel on a 4h TD sequential 9 somewhere tomorrow 12/18, being rejected by 3800 red resistance.
Alternative scenario would be a rejection right now by 3650 red resistance.
Therefore, I'm now setting a tight trailing stop to close my long position either now or upon reaching 3800. I would wait for confirmation of 3800 rejection before entering a short position which could go all the way down to 2800-3000 for a clean bottom.
Otherwise ? I'm not seeing price action breaking above 4k that soon. But I honestly have no clue. Any better idea ?
From an Elliott point of view, we could argue a corrective wave 4 upwards, which could end beautifully at the top of purple channel on a 4h TD sequential 9 somewhere tomorrow 12/18, being rejected by 3800 red resistance.
Alternative scenario would be a rejection right now by 3650 red resistance.
Therefore, I'm now setting a tight trailing stop to close my long position either now or upon reaching 3800. I would wait for confirmation of 3800 rejection before entering a short position which could go all the way down to 2800-3000 for a clean bottom.
Otherwise ? I'm not seeing price action breaking above 4k that soon. But I honestly have no clue. Any better idea ?
Order cancelled:
Well, we did break 4k there ! The only correct parts ofthat chart were the red horizontal levels which match perfectly the resistances and supports we have encountered so far in this bull run !