Yesterday we examined the weekly chart and noted the strong buy signal from the Stochastic as well as the Tweezer Bottom from last week. I also noted that the RSI had climbed back above 50 for the first time in two months and also pointed out bullish divergences in the weekly and daily OBV. We have also been waiting for a few days on the 50 and 200 period MA’s to crossover on the 4 hour chart as well as the 12 and 26 period EMA’s to cross over on the daily chart.
Unless something out of the ordinary happens the 50 and 200 MA’s should be crossing on the 4 hour chart sometime today. That is a relatively strong buy signal and is something to keep your eye on. If looking to build a bullish position then I would recommend using 50% of your normal position size due to betting against the trend. Enter ½ of that position upon the crossover on the 4 hour chart and add the rest after the 12 & 26 EMA’s cross on the daily chart.
We have been challenging the resistance at $6,800 over the past week and I do not expect it to hold much longer. As soon as the price breaks through that level I am expecting a 15 minute candle to take us straight to $7,500 where the next significant area of resistance will be waiting. Setting a stop entry order at $6,826 could be a good idea as well.
The divergence in the daily OBV disappeared as quickly as it showed up, however the divergence in the weekly is still evident.
1d
1w
The Ichimoku Clouds are in the process of turning bullish on the lower time frames. The 4 hour cloud turned fully bullish on the 4th of July. The price has been attempting to break out of the 6 hour cloud over the past 36 hours and we just re entered the 12 hour cloud.
6h
12h
The bullish indicators are mounting, however keep in mind that the resistance is going to be very strong from here to $8,500.
The visible range volume profile shows the amount of volume at certain price levels. The larger the volume bars the more significant the resistance will be. As you can see below the bulls will be fighting an uphill battle in the weeks to come.
I am still strongly considering opening a long upon the moving average crossovers. I am viewing a pump to $7,500 - $8,000 as a very likely outcome in the next 7-10 days. If I do decide to enter it will be for a maximum of 50% of my normal position.
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Unless something out of the ordinary happens the 50 and 200 MA’s should be crossing on the 4 hour chart sometime today. That is a relatively strong buy signal and is something to keep your eye on. If looking to build a bullish position then I would recommend using 50% of your normal position size due to betting against the trend. Enter ½ of that position upon the crossover on the 4 hour chart and add the rest after the 12 & 26 EMA’s cross on the daily chart.
We have been challenging the resistance at $6,800 over the past week and I do not expect it to hold much longer. As soon as the price breaks through that level I am expecting a 15 minute candle to take us straight to $7,500 where the next significant area of resistance will be waiting. Setting a stop entry order at $6,826 could be a good idea as well.
The divergence in the daily OBV disappeared as quickly as it showed up, however the divergence in the weekly is still evident.
1d
1w
The Ichimoku Clouds are in the process of turning bullish on the lower time frames. The 4 hour cloud turned fully bullish on the 4th of July. The price has been attempting to break out of the 6 hour cloud over the past 36 hours and we just re entered the 12 hour cloud.
6h
12h
The bullish indicators are mounting, however keep in mind that the resistance is going to be very strong from here to $8,500.
The visible range volume profile shows the amount of volume at certain price levels. The larger the volume bars the more significant the resistance will be. As you can see below the bulls will be fighting an uphill battle in the weeks to come.
I am still strongly considering opening a long upon the moving average crossovers. I am viewing a pump to $7,500 - $8,000 as a very likely outcome in the next 7-10 days. If I do decide to enter it will be for a maximum of 50% of my normal position.
Thank you for reading! Have something to say? Leave a comment! Smash the follow so that you don't miss out on future updates and remember that clicking the like is good karma!
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