OK folks here is my final draft once again readjustin my top purple wedge trendlne. We can see that the big green candle did indeed break above the wedge as I originally thought...and that we likely will have broken out because of the bullish volume that went with it. However the current 4 hour candle closing above the wedge as well 1 and a half hours from now will confirm that....now that I have my wedge lines more accurately zoned in we can see that the projected target is actually much higher than 9600 as I had originally thought untl going back to double check the top wedge line. That is a bonus indeed. All current resistance and support possibilities on the journey to that price target have been labled on the chart...this is my final draft on it sorry for posting the previous 2 quick ideas over the last hour before realizing that minor adjustments were in order. Either way the outlook is still very positive.
Comment:
we have boucned down pretty fast off of the green descending channel wall at $8471 so we know that is currently resistance...we now need to see whether or not the lavender fib line will also become resistance or if we'll get back above it to retest the descending green channels top trendline. The probability is good that we will retest the green channel again, but we may have to battle with the lavender trendline a little 1st.
Comment:
one last thing to note is that the MACD recently did a bullish crossover on the 4 hr and the 4hr RSI is super healthy right now not close to being overbought.
Comment:
ok we are seeing the lavender fib line of 8240 also acting resistant...hopefully the ascending wedge being double reinforced with the white trendline will make for strong support...if for come reason it doesn't maintain support or if we cose this candle inside the ascending wedge then the breakout is a no go and theres a chance we could still test even the bottom of the purple wedge again before finally breaking outward....much higher probability however that we will close above the purple wedge and the breakout will be confirmed making the top wedge line and white fib lines double reinforced support valid as well....we should get a retest of the wedge line as support soon and if we see a significant bounce off of it we know that the probability is then much higher that the breakout will be confirmed considering the candle only has 1 hour left before closing time.
Comment:
one last significant thing to reiterate is that though we have closed above the wedge on the 4hr chart pretty resoundingly...it was much less of a close above on the day chart with only the right upper corner of the 1day candle closing above. A 2nd 4 hr candle close above will likely be confirmation of the breakout but we really also want to see the net 1 day candle close above too otherwise there's still a chance to reenter the ascending wedge and even test the bottom of it again before really breaking out...the volume boost and good news from the g20 however gives me confidence that we will confirm a breakout. We need to continue to see bullish volue surge if we are going to sustain the breakout though.
Comment:
The new candle is also seeing the lavender fib act as resistance at the moment...however it has not yet gone back down to test the purple wedge line as support.
Comment:
best to be cautious here and remember that the previous 4 hour candle closed as a long wick red gravestone doji...which are usually pretty effective as a trend reversals...we are now consolidating...hopefully doing so in a way that forms a bull flag rather than diving back down into the wedge. Will have to wait and see but seeing a nice supportive bounce upward if we dip down to test the top wedge line will give us the best insight on what the best next move is...stll hasn't tested it.
Comment:
finally broke back above the lavender 23.60 fib line...should hopefully try to retest the green descending channel line again.