Notice how the Feb 6 overshot the supporting trend line by 25%. We are likely to do the same here with the July-Sept trend support based on the selling momentum we are seeing right now. Two possible overshoot targets. #1 @ $5,800 to match the low from Feb 6th or a worst case scenario where we reach for support at the 2017 long term trend line somewhere between $4500 and $5800.
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Well, as predicted we had our first bounce perfectly off of the July-Sept trendline. You will see that we are currently forming a perfect bear flag with declining volume. THIS IS NOT A CHARACTERISTIC OF A REVERSAL. THIS IS A VERY BEARISH SIGN. BEWARE.
Compare the volume of the selling up to this point to the volume in this flag, that should tell you everything you need to know about whether the July trendline will hold. IT PROBABLY WON'T. Look to the first orange square for an initial reversal target if downward price momentum maintains weak. If momentum by volume and on the MACD remains strong, then look towards the longer term 2017 trend line as support. THIS MEANS DEEP $5,000s PEOPLE.
Compare the volume of the selling up to this point to the volume in this flag, that should tell you everything you need to know about whether the July trendline will hold. IT PROBABLY WON'T. Look to the first orange square for an initial reversal target if downward price momentum maintains weak. If momentum by volume and on the MACD remains strong, then look towards the longer term 2017 trend line as support. THIS MEANS DEEP $5,000s PEOPLE.
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Comment:
Another reversal signal could be long term macd trendline firm bounce
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