We have formed yet another bear flag on the 4 hour chart
As you can see the past fe candles have been more or less trading sideways....I anticipate the price will break downward bearishly out of the current flag, which should help the price continue to reach the drop target from the larger bear flag of around 5700....I still have a limit buy back set up at 7590 and am waiting patiently...I expect it to go even further below that but am trying to be moderate and not too greedy....if once my limit buy is triggered the price continues to dip I will ladder in small amounts just above further lines of support respectively. Even though the price target of the biggest bear flag puts us all the way into the upper 5,000s...I still believe the ascending grey trendline will cause a massive rebound at around 6800-6900...it my very well wick below that though which allows for the potentially of a massive double bottom to form which would have the same upswing price range that the inverted head and shoulders would have had had it been validated and triggered of around 17000. This current sideways movement and consolidation is allowing the RSI to take a rbeather and keep it from lingering too long in oversold conditions to allow it to dip further.
Comment:
repeating the first comments but fixing the typoes: As you can see the past few candles have been more or less trading sideways....I anticipate the price will break downward bearishly out of the current flag, which should help the price continue to reach the drop target from the larger bear flag of around 5700....I still have a limit buy back set up at 7590 and am waiting patiently...I expect it to go even further below that but am trying to be moderate and not too greedy....if once my limit buy is triggered the price continues to dip, I will ladder in small amounts just above further lines of support respectively. Even though the price target of the biggest bear flag puts us all the way into the upper 5,000s...I still believe the ascending grey trendline will cause a massive rebound at around 6800-6900...it may very well wick below that though which allows for the potential of a massive double bottom to form which would have the same upswing price range that the inverted head and shoulders would have had had it been validated and triggered of a climb to around 17000. This current sideways movement and consolidation is allowing the RSI to take a breather and keeping it from lingering too long in oversold conditions to allow it to dip further.
Comment:
the current line of support appears to be the blu 78.60% fib extension line at $8060.60. the ebars have managed to send a couple wicks below it but so far it's holding strong and may hold up this entire 4 hour candle.
Comment:
I assume the current resistance is the t-line but we have yet to test it.
Comment:
if suddenly the blue fib line starts acting as resistance then I thinkt hat willll be a good sign that te inevitable breakout of this flag will have a much higher probability of being bearish.
Comment:
The t line was tested and as I anticipated it acted as resistance and sent the price back down.