Good morning traders. We had a great weekly close and, so far, have seen the previous supply zone flip to demand and support price as I mentioned was most likely to happen. Price has continued to consolidate between the top of the demand zone and the top of the ascending channel, but upward overall. However, we need to see some more significant price appreciation sooner rather than later as too much time spent sitting in this zone will lead to a drop in price once the demand is taken out by supply pressure. The 4H chart printed a bullish engulfing candle with Stoch RSI bottomed out and crossing bullishly while RSI remains bullish at 52.6. Price is attempting to close above the 21 EMA as well as it sits just above the pivot.
While the 4H may look a bit ominous over the past three days (possible very narrow double top printing with a close below the purple line at $5510 confirming it), the 1H shows price currently printing a descending broadening wedge within a minor ascending channel within the greater 4H ascending channel. A breakdown of the minor ascending channel today or tomorrow would likely have price targeting the S1 pivot around $5240 to the ascending channel support just below it which would fill in the lower gaps. I will be watching for the 1H RSI to break through its descending resistance to suggest stronger upward momentum on the shorter TF. This should coincide with the 4H RSI doing the same, which would then give me reason to believe more significant upward momentum is on the way.
I do have some concerns. There are 1H gaps below price at $5514.53 and $5180.91, with the latter situated near the EQ of the demand zone. This doesn't mean that price must fill those gaps right now, but the longer price just "hangs out" at its current level the more likely they will be filled before further upward progression. There is also a gap above price at $5714.40. For now, price does appear ready to continue its journey upward toward the targets mentioned in my previous analysis. Will price surge through the resistance of the various ascending channels to reach those higher targets or will it just continue to move up a bit, consolidate, and move up some more? We will see, but the channels do give us an idea of the levels to watch along the way, especially where they find confluence with other resistance levels and/or targets.
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
While the 4H may look a bit ominous over the past three days (possible very narrow double top printing with a close below the purple line at $5510 confirming it), the 1H shows price currently printing a descending broadening wedge within a minor ascending channel within the greater 4H ascending channel. A breakdown of the minor ascending channel today or tomorrow would likely have price targeting the S1 pivot around $5240 to the ascending channel support just below it which would fill in the lower gaps. I will be watching for the 1H RSI to break through its descending resistance to suggest stronger upward momentum on the shorter TF. This should coincide with the 4H RSI doing the same, which would then give me reason to believe more significant upward momentum is on the way.
I do have some concerns. There are 1H gaps below price at $5514.53 and $5180.91, with the latter situated near the EQ of the demand zone. This doesn't mean that price must fill those gaps right now, but the longer price just "hangs out" at its current level the more likely they will be filled before further upward progression. There is also a gap above price at $5714.40. For now, price does appear ready to continue its journey upward toward the targets mentioned in my previous analysis. Will price surge through the resistance of the various ascending channels to reach those higher targets or will it just continue to move up a bit, consolidate, and move up some more? We will see, but the channels do give us an idea of the levels to watch along the way, especially where they find confluence with other resistance levels and/or targets.
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
