scenario # 1 -If breaks support at $3,500 good chance to dump to next major support at $3,200. A dump of up to 16% could be realized for those wanted to short.
scenario # 2 - looking for a break out of descending trend channel before the breech of the support level at $3,500. The rally needs to be break a minor resistance level $3600 if successful we would be looking at a rally to test a major resistance at $3,750. This rally could see a potential gain of up to 7%, not very impressive to the Bulls unfortunately.
I feel scenario #1 seems more likely and would out my money with the Bears over the next 6 to 8 hours.
Thoughts?
Good trading everyone :)
Comment
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Lets see what happens in the next hour candlestick to test scenario # 2 or if it heads back down not breaking through the upper trend line and continues tracking through the narrow trend channel.
Trade closed: target reached
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Seems Scenario # 2 has been established as current path has confirmed.
Looks like scenario # 2 is playing out. Anyone agree?
Sixboost
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Looks like we are already at 3620.
djkirbynz
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@Sixboost, Hi Sixboost, yes keep an eye on the upper trend line as it seems to be hitting it but not penetrating through. We would be looking at waiting for a break through at that level.
Looks it may continue down through the narrow trend channel eventually hitting the support at $3500. If it breaks I predict a dump to potentially $3200. Wish we had a crystal ball :)