Good morning traders. Reminder Powell speech is at 12:40 EST
As we can see on the 4H time frame the RSI divergence indicator has given a bullish signal which is a good sign for future momentum. Also the Aroon indicator has shown the blue bear line brought past the 50% mark however the yellow bull indicator has yet to move. this showing a movement is on the horizon but which is TBD.
Minor resistance 23k
Major resistance 24k
Largest resistance 25k
Here's my theory on the matter.
If the speech contains more dovish remarks we will see a swing up to the 24k resistance, I think with the price movement the last couple days and some bad new about the labor force and more belief about more down before up, there wont be enough momentum to break the 24k resistance YET even if the speech is more dovish then hawkish.
VS
If the speech does contain a more hawkish stance and Powell talks about larger rate hikes because of the new labor force data we will see a very large dip.
first minor support 22.5k
Major support 22.25k
If 22.25k is broken and definitely watch for false breaks, I think this will dishearten bulls in the short term and we could see the very major support of 21k in view
Newby Alert, lmk if yall have any different ideas Boost if you agree
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currently more dovish
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most of the speech was dovish and the market saw some upward movement however it was push immediately by the bears. i think this is good indication of bear power and if the hourly 22.75k support is broken i think we will end the day again in the red.
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previous comment was short term thesis. there still is a chance of upward movement to 24k, movement above 23.6k i think could be a good sign of this
He mentioned about a period of prolonged higher interest rates at the end. I think that was the reason the markets slipped today.
Sembiyan
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@artisticCheeta52908, I think we need to go to 21K before the next upmove. Bulls just dont have the power now.
TheCryptoCubClub
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I was wondering what that was from. I must have missed that part. Thank you for the insight 🙏 I do agree with that 2nd statement tho.
mabbasi2019
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Man, you dont know what your posting? Your chasing candles only one time up one time down
TheCryptoCubClub
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@mabbasi2019 as I have stated, I am newer and just posting the possibilities and opinions as i see it. It's always great to hear others' opinions feel free to share. 😊
TheCryptoCubClub
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@mabbasi2019 also I made that my opinion was that it was going down and I'm sticking with that, all I was saying in the last up date was that there's still a possibility that idea could be invalidated.