Hello followers and other TradingView users, I'm back behind the computer! ;)
Sorry for those who have asked updates but from my perspective, there was no need for that because we waited for a little throwback around $4,000 and we did know the bounce area where we can enter into the market again and as planned, the price got a pretty decent pump after we reached into the $3,600 area. So, technically a good setup played out nicely.
Let's jump into the current price action or let's watch this action from bigger timeframes. Do this current bottom around $3,100 could be the short-term, mid-term reversal point or not.
If we look the monthly chart then the price has drawn to us almost a perfect bullish candlestick pattern called "Hammer" but remember there are 2 days to go before the month and the year ends nothing confirmed until it's confirmed ;)
This will show that if the current month ends up with this candle then there are pretty big odds that January may come bullish because the price action inside the monthly candle shows some bullish signs. Let's search and count some of those price action criteria.
The weekly chart shows us that the current bottom has found its end after it touched 200EMA.
Clean touch and next week it just flued back to the higher levels. It is a decent example about V shape bottom.
The daily chart gives us a short-term bullish view after the price touched the mentioned $3,600 area. There we got a solid bounce upwards and this bounce formed to us a nice bullish candlestick pattern called Engulfing.
Yesterday we did a little movement downwards - which is normal - and today the price got a bounce from a perfect FIB level and technically the rally should be continued. Technically we have got the perfect bounces from several places and we should be ready to make another leg upwards to the major area, to the major price action structure change area - above the semi-round number $4,500. If we get a daily candle close or even a 4H candle close above the $4.5k level then we have the most important NEW Higher High. From there we can say that the mid-term bottom is made and we could see a slight bullish ride upwards. All right, I rushed too much ahead but let's search some pos. price action from the 4H chart.
The 4H chart shows two types of patterns. Both are the same bullish patterns but one has formed a bit longer than the second pattern.
The first inverted Head & Shoulders pattern has formed since November and it should be confirmed after it makes a break above the neckline trendline.
It should be confirmed after we get a candle close (at least 4H candle) above the $4,150 and the full confirmation becomes after the candle close above the neckline and above the strong resistance at $4,242. The road to the confirmation close is heavy because of the 200EMA and $4,000 should act as a strong resistances but let's see, it could be time-consuming but this confirmation after the close would be a very big statement upwards!
The second inverted Head & Shoulders pattern has formed lately:
The head is the well-known strong area at $3,600 and currently, the price drifts around the right shoulder. To confirm this pattern we have to get at least a 4H candle close above the $4,000 level. Then we have a break above the neckline and we have a break above the round number. So, from there You should get a trade opportunity from $4,000 to the bigger H&S neckline at $4,190.
Things start to get a bit nervous after we see a candle close below the black trendline and below the strong price level $3,676. Just a bit nervous because we have still this strong blue area below the price which should act as a strong support level just around the $3,600.
Overall, if the price starts to fall lower than the blue area around $3,600 then You have to be very cautious because this is the key level what You have to watch. If this level breaks then this is a first bigger sign that we might see a bigger movement downwards. It could be a pretty sharp move down and it changes some action on the charts, then the monthly candle is not a Hammer anymore and both bullish patterns (Inverted Head & SHoulders) becomes invalid! Those red areas on the chart should give You first bearish confirmations when You see some close confirmations inside the boxes.
Hopefully, You enjoyed this and if it's true please hit the LIKE!
Please, don't forget to LIKE, COMMENT & FOLLOW!
Thank You for your support, I really appreciate it!
CHEERS!
*This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
Sorry for those who have asked updates but from my perspective, there was no need for that because we waited for a little throwback around $4,000 and we did know the bounce area where we can enter into the market again and as planned, the price got a pretty decent pump after we reached into the $3,600 area. So, technically a good setup played out nicely.
Let's jump into the current price action or let's watch this action from bigger timeframes. Do this current bottom around $3,100 could be the short-term, mid-term reversal point or not.
If we look the monthly chart then the price has drawn to us almost a perfect bullish candlestick pattern called "Hammer" but remember there are 2 days to go before the month and the year ends nothing confirmed until it's confirmed ;)
The weekly chart shows us that the current bottom has found its end after it touched 200EMA.
The daily chart gives us a short-term bullish view after the price touched the mentioned $3,600 area. There we got a solid bounce upwards and this bounce formed to us a nice bullish candlestick pattern called Engulfing.
The 4H chart shows two types of patterns. Both are the same bullish patterns but one has formed a bit longer than the second pattern.
The first inverted Head & Shoulders pattern has formed since November and it should be confirmed after it makes a break above the neckline trendline.
The second inverted Head & Shoulders pattern has formed lately:
Things start to get a bit nervous after we see a candle close below the black trendline and below the strong price level $3,676. Just a bit nervous because we have still this strong blue area below the price which should act as a strong support level just around the $3,600.
Overall, if the price starts to fall lower than the blue area around $3,600 then You have to be very cautious because this is the key level what You have to watch. If this level breaks then this is a first bigger sign that we might see a bigger movement downwards. It could be a pretty sharp move down and it changes some action on the charts, then the monthly candle is not a Hammer anymore and both bullish patterns (Inverted Head & SHoulders) becomes invalid! Those red areas on the chart should give You first bearish confirmations when You see some close confirmations inside the boxes.
Hopefully, You enjoyed this and if it's true please hit the LIKE!
Please, don't forget to LIKE, COMMENT & FOLLOW!
Thank You for your support, I really appreciate it!
CHEERS!
*This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
Comment:
A possible first confirmation may come after a candle close above the chart pattern Falling Wedge! The falling wedge is a bullish/continuation pattern which starts to work after a candle close above the upper trendline!
As mentioned, the bullish momentum is only then when You see a candle CLOSE above of it!
"LIKE" would be nice ;)
Cheers!
As mentioned, the bullish momentum is only then when You see a candle CLOSE above of it!
Cheers!
Comment:
A pattern inside the pattern!
Currently, we have two bullish chart patterns and they are both bullish. We have a Falling Wedge and we have a mentioned Inverted Head & Shoulders! If we make a breakout soon then this setup would be a perfect bullish confirmation after we get a candle close above $4k! Then we have both patterns breakout!
CLOSE needed!
Currently, we have two bullish chart patterns and they are both bullish. We have a Falling Wedge and we have a mentioned Inverted Head & Shoulders! If we make a breakout soon then this setup would be a perfect bullish confirmation after we get a candle close above $4k! Then we have both patterns breakout!
CLOSE needed!
Comment:
Over the night we made a break below the recent trendline. This trendline is not so reliable because of the wicks size but it might be a sign that the price may go lower. To be on the safer area we need that the bulls push it above the $3,820 other ways it could go $3,676!
Overall, currently there are no trade opportunities and You should stay away before we get confirmations and if I'm not on the computer to tell those then I have said these confirmation areas!
"LIKE" would be nice and thank You for those who have liked! I really appreciate your support!
Overall, currently there are no trade opportunities and You should stay away before we get confirmations and if I'm not on the computer to tell those then I have said these confirmation areas!
Comment:
NEW trading idea:
I wish You an amazing New Years Eve!
Your "LIKE" makes my eve ;)
Cheers!
Your "LIKE" makes my eve ;)
Cheers!
Do not forget the like button to support me!
Cheers!!