Just an OPINION if it is useful PLEASE LIKE and FOLLOW.
Hello traders:
What we see:
1. Huge candle in the 4hr chart with big body and no tails. Some people here agree that the price is fair and a good buying area. This can be interpreted as decisiveness (blue elliptical).
2. Accumulation Distribution is above it's EMA13. Buy the dip? Sure many people bought the dip (purple elliptical).
3. Good buying volume, and lack of selling volume (purple elliptical).
4. RSI just entered the overbought zone. If price fluctuates in the overbought zone then it would mean an upward trend continuation (orange elliptical).
5. Resistance areas (key local pivots): 58553, 60029, 60976, 62278, 66401, 66875, 69000. Challenge ahead, we need to break those levels to continue the bull cycle.
6. Support areas (key local pivots): 52,920 (strongest) 53,500, 55600. We must defend those levels, if not downtrend will continue.
7. Huge bullish MACD divergence that has not been invalidated. Downward trend just losing it's force (black elliptical).
8. 4hr candle in progress (creen elliptical). We have 2hrs left for the moment of truth. If it closes above the wedge, then it is very likely that the reversal of the downward trend will follow through. We still need for the daily timeframe to be confirmed.
Conclusion: We saw a positive reaction at the 53500 level. We see awesome bodies with no tails which shows that the market is very decided. If the price manages to get out of this correction, we have a few challenges ahead, we need to break all those resistance areas for this bull run to continue. The worst case scenario is that we get a fake breakout, and a weak pump upward, and see a dramatic dump downward, which could penetrate all those support areas (mentioned above). It all depends on the media now. My best guess is that the new COVID variant news was orchestrated to fill all those buy orders. Those are the real whales. Anyways, with good TA and good risk management, we can at least defend ourselves.
So what do you think guys? Are we going to resume the bull trend? Will we be able to penetrate those Resistance areas?
Remember, preserve your capital and live to fight another day, step by step is the best way, best of best my friend.