Here the choice is between another sweep and marking a bottom. The first results in a discovered temporary pullback which allows early buyers to start getting excited... but the second moves involves a slingshot, automatically through the .
A quick review of the initial charts we have been tracking
This was the well known position. A yearly break unlocked $42,000.
Double check the chart, it was a purely technical map. It is terribly accurate and compelling; even the most unaware buyers have had a long time to take profits. After buyers cleared this target we closed the chapter and started to look for the retracement.
1️⃣ In the initial chart played some weeks ago, things came down to the following interesting ABC position
Buyers last move was of course to clear on the exhaustive nature and failure to mark a new high. The swing ended and control as I pointed out switch sides.
2️⃣ The following sessions played out as expected, the imaginative sellers started to enter making the position look a really natural move
The somewhat theatrical looking chart by sellers - has worked! Buyers no longer wish to refute and are running to the hills... sellers got the upper hand. The correct play now is to manage our risk and stops accordingly.
3️⃣ The congestion entered into play and I gave a simultaneous display on how to neatly mange the trail
Buyers did in fact try the within a within a zag... but was not enough and sellers with a strong attack took out support and forced the bid further into retreat.
4️⃣ So the bottom forming of the swing, or the sweep towards fresh lows and to complete the pending Jan 4th test we have been tracking since day one?
The idea of scaling a position
Before you tackle what follows, you should quickly check that you are well versed in the concerning flows and swing. If not refresh your ideas on these, because these chapters will be important for the correct understanding of what follows.
The flow is as follows, after the sharp drop in ((v)) the possibility of a pullback towards $32/$33,000 is on the cards before a final back to re-test the main target at $28/27,000. I do not believe the energy sellers have shown can suddenly disappear just because of that retrace. No, it must still be on the menu, even if in some modified formation. A breach above our new level at $34,200 will block the movement for sellers and threaten the sweep of any remaining trail stops from above. In other words, the is our last blockade as sellers.
Thanks as usual for keeping the feedback and charts coming 👍 or 👎
A breach below $31,400 will unlock a sharp and fast momentum leg to our $28/27,000 lows while a break back above the $34,000 pivot will start to call for reassessment:
Sellers showing signs of running out of steam, but with our stops are holding (barely) means we will get another shot.
We'll see how it goes, but you see how it has not really been a sweat the whole time.
Please check your previous predictions! In fact, you wrong and you need to see more flexible than you see now.
Since we hit 42k we've been bearish.. We need to correct.