Yesterday I was sitting on the sidelines and waiting to see what developed. I was keeping my eye on the red dotted line and the 50 day moving average.
The bulls needed to support above the moving average and break the bear trend formed by the red dotted line. Unfortunately the bears won that fight and now it looks like we are heading lower.
That made a third point of contact on the red dotted bear trend. Since that has been established it is even more likely that the price will resistance on the fourth point of contact.
We have broken down below the longer term bull trend support (green dotted) as well as the horizontal support at $7,000. Not to mention that the RSI is back below 50.
The next area of support will be $6,675 and I do not expect that to provide a bounce. We have already bounced from that area twice and it will be much weaker the third time around.
If we do break down below that then the next area of support is $6,000.
Wish I had better news but those are the technicals as I see it!
Until next time happy trading and remember that following is free!
The bulls needed to support above the moving average and break the bear trend formed by the red dotted line. Unfortunately the bears won that fight and now it looks like we are heading lower.
That made a third point of contact on the red dotted bear trend. Since that has been established it is even more likely that the price will resistance on the fourth point of contact.
We have broken down below the longer term bull trend support (green dotted) as well as the horizontal support at $7,000. Not to mention that the RSI is back below 50.
The next area of support will be $6,675 and I do not expect that to provide a bounce. We have already bounced from that area twice and it will be much weaker the third time around.
If we do break down below that then the next area of support is $6,000.
Wish I had better news but those are the technicals as I see it!
Until next time happy trading and remember that following is free!
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