What I'm about to share is an incredible fractal comparing current price action to the summer pump of 2018.
I'm going to do my best to break everything down here in the description.
First, on the larger time frame we have a monthly MacD cross in both the summer of 2018 and current time frame.
That alone is not something I care a great deal about on its own but it lends more credibility to the rest of the fractal.
On the weekly we have RSI in similar areas today as we did during the summer 2018 false rally.
We can see price breaking the 21 week MA.
In 2018 this was a false break followed by more downside.
The size of the pumps are similar with one coming in around 39% and one just under 45%.
On the 3 day chart, we again have very similar RSI.
In addition, you'll notice that the length between highs is the same at 27 bars.
On the daily chart we have a very similar looking iH&S followed by nearly identical price action.
We also have very similar hidden divergences in the RSI.
We appear to be testing the 200 daily MA from the underside.
And last but not least, the time from the "top" is also very similar to the summer of 2018 at 220/202 days respectively.
I know many folks believe the bottom is in, and in all fairness, I understand why they feel that way but I personally believe this is yet another bull rally inside of a bear market.
I suspect we'll once again test our 200 week MA similar to the bottom of 2015 and bottom of 2018.
I'm going to do my best to break everything down here in the description.
First, on the larger time frame we have a monthly MacD cross in both the summer of 2018 and current time frame.
That alone is not something I care a great deal about on its own but it lends more credibility to the rest of the fractal.
On the weekly we have RSI in similar areas today as we did during the summer 2018 false rally.
We can see price breaking the 21 week MA.
In 2018 this was a false break followed by more downside.
The size of the pumps are similar with one coming in around 39% and one just under 45%.
On the 3 day chart, we again have very similar RSI.
In addition, you'll notice that the length between highs is the same at 27 bars.
On the daily chart we have a very similar looking iH&S followed by nearly identical price action.
We also have very similar hidden divergences in the RSI.
We appear to be testing the 200 daily MA from the underside.
And last but not least, the time from the "top" is also very similar to the summer of 2018 at 220/202 days respectively.
I know many folks believe the bottom is in, and in all fairness, I understand why they feel that way but I personally believe this is yet another bull rally inside of a bear market.
I suspect we'll once again test our 200 week MA similar to the bottom of 2015 and bottom of 2018.
Trade closed: target reached
Price movements seem to be more similar now than last week.
In addition, the 21 week MA that many folks cling to for support looks very similar to 2018.
I would not be at all surprised to see price move up to $8900 again to fill in the smaller time frame CME gap before finally dumping to <$6400 levels.