Price broke below the 4000 support level after the bulls lost their grip of and failed to push price above the 4200 level, a situation that gave the bears more momentum to take over control.
As of now, the bears appears to be in full control, and this will become clear to all as we dip further towards the 200 week MA where I did expect us to get a short term bounce as a relief from this downward move.
On the weekly, after getting our higher low, I expected the bulls to sustain the upward move towards the 4800-5000 area, but the bears were too strong for the bulls as they got rejected many times at 4200 before finally giving up.
Bearish cross on weekly stochastic
Weekly candle opened below the previous
Next support level on the weekly:
200 week MA 3480
Horizontal Support 3180 (yearly low)
On the daily, price broke out of the rising wedge after being rejected by the 20 week MA which has successfully acted as a very strong resistance since the beginning on this bear market (140 day MA), but quickly found support on the 50 day moving average where we bounced. Price appears to be forming a bear flag right now, and with the weak volume seen in the last one week, I do expect a continuation of the downward move. A break below the the 50 day MA will see price retesting the following support levels:
3750-3650
3550.
The 200 week MA is right below 3550, so I did expect us hold hold any of this support levels especially the 200 week MA, and find a brief relief rally towards 3750-3800 area where we will get a rejection and a lower high formation before the final shakeout IMO .
As of now, the bears appears to be in full control, and this will become clear to all as we dip further towards the 200 week MA where I did expect us to get a short term bounce as a relief from this downward move.
On the weekly, after getting our higher low, I expected the bulls to sustain the upward move towards the 4800-5000 area, but the bears were too strong for the bulls as they got rejected many times at 4200 before finally giving up.
Bearish cross on weekly stochastic
Weekly candle opened below the previous
Next support level on the weekly:
200 week MA 3480
Horizontal Support 3180 (yearly low)
On the daily, price broke out of the rising wedge after being rejected by the 20 week MA which has successfully acted as a very strong resistance since the beginning on this bear market (140 day MA), but quickly found support on the 50 day moving average where we bounced. Price appears to be forming a bear flag right now, and with the weak volume seen in the last one week, I do expect a continuation of the downward move. A break below the the 50 day MA will see price retesting the following support levels:
3750-3650
3550.
The 200 week MA is right below 3550, so I did expect us hold hold any of this support levels especially the 200 week MA, and find a brief relief rally towards 3750-3800 area where we will get a rejection and a lower high formation before the final shakeout IMO .
