We are consolidating in a pennant. The chart pattern itself has bullish continuation bias but indicators tell a different story.
- PPO bearish divergence
- Stoch bearish divergence
- RSI bearish divergence
- CCI bearish divergence
- MACD is bearish, confirmation with histogram turning bearish
Bearish scenario
The picture above suggests a more likely bearish breakout.
The first take profit point would be at 10,000 dollars where the round number and previous price action offers some weak support.
Even weaker support is offered on the 0.382 Fibonacci retracement at -13% target around 9200 dollars
Strong support and a more likely correction end is at TP3, at -20% from breakout around 8500 dollars. This is we have solid support and have ranged significantly before.
Bullish scenario
In case of a bull breakout there is no resistance above with the exeption of previous ATH of 11,400 dollars. This could lead to a double top or more likely a push to 12,700 dollars.
Late sunday lately has seen major moves developing so keep a very good look for price movements and breakout of the pattern.
Enter only with a solid volume in the direction of the breakout and with a full close outside the pattern. Use indicators as a confirmation.
Trade Safe.
- PPO bearish divergence
- Stoch bearish divergence
- RSI bearish divergence
- CCI bearish divergence
- MACD is bearish, confirmation with histogram turning bearish
Bearish scenario
The picture above suggests a more likely bearish breakout.
The first take profit point would be at 10,000 dollars where the round number and previous price action offers some weak support.
Even weaker support is offered on the 0.382 Fibonacci retracement at -13% target around 9200 dollars
Strong support and a more likely correction end is at TP3, at -20% from breakout around 8500 dollars. This is we have solid support and have ranged significantly before.
Bullish scenario
In case of a bull breakout there is no resistance above with the exeption of previous ATH of 11,400 dollars. This could lead to a double top or more likely a push to 12,700 dollars.
Late sunday lately has seen major moves developing so keep a very good look for price movements and breakout of the pattern.
Enter only with a solid volume in the direction of the breakout and with a full close outside the pattern. Use indicators as a confirmation.
Trade Safe.
Comment:
Bullish breakout, notice the volume has to increase to confirm positevely the breakout.
Comment:
MACD crossover seems to indicate the bullish continuation, volume uptake needed to confirm the momentum.
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