Wow what a run, but where does it end? We know from history all good things come to end before they get better again.
On a weekly chart I believe we in #5thwaveElliot which is running close to the upper resistance trend line, MACD showing bullish, above center line however below signal line, price rising which is a concern for me as it indicates divergence. Hence I smell a correction coming soon possible this week before we move up again. The question is where is the high before the correction and how far down will it correct before it finds support?
We can clearly see since mid-September the bullish wave has developed into a rising wedge, which signals a trend reversal, trend is up so reversal means down. My belief is that we have not quite reached the tipping point but it’s coming soon, based on a 1.6 fibo extension I place the point to be in the $6300 - $6500 range.
Now, if it corrects I believe it will find support around the $4800 -$5000 range based on the theory of previous resistance is new support, we saw the same behaviour in June 2017.
If we break upper resistance for some reason we need to recheck out charts, but we not there yet. Remember we make decisions based on what we see not what we want to see!
So:
Rising wedge trend reversal
Tipping point $6300 - $6500 range
Bounce $4800 -$5000 range (short opportunity)
All before the end of the month.
Long term still bullish to $7K
Happy trading.
On a weekly chart I believe we in #5thwaveElliot which is running close to the upper resistance trend line, MACD showing bullish, above center line however below signal line, price rising which is a concern for me as it indicates divergence. Hence I smell a correction coming soon possible this week before we move up again. The question is where is the high before the correction and how far down will it correct before it finds support?
We can clearly see since mid-September the bullish wave has developed into a rising wedge, which signals a trend reversal, trend is up so reversal means down. My belief is that we have not quite reached the tipping point but it’s coming soon, based on a 1.6 fibo extension I place the point to be in the $6300 - $6500 range.
Now, if it corrects I believe it will find support around the $4800 -$5000 range based on the theory of previous resistance is new support, we saw the same behaviour in June 2017.
If we break upper resistance for some reason we need to recheck out charts, but we not there yet. Remember we make decisions based on what we see not what we want to see!
So:
Rising wedge trend reversal
Tipping point $6300 - $6500 range
Bounce $4800 -$5000 range (short opportunity)
All before the end of the month.
Long term still bullish to $7K
Happy trading.