Let's go directly to the goal : I said to be careful in my last analysis because we didn't had buying volume on the pullback spot (you can find this analysis attached to this one). Effectively it didn't lie, we are back on the spot with a high volatility risk for the next hours/days.
WHAT WE HAVE ?
WHAT I THINK ?
We've seen in last analysis that we didn't had buying volume, so how can we find some ? Two possibilities here, or we retest the support until we absorbed all sellers and buyers overwhelmed them. Or we strongly move down to exhaust sellers and erase them on the next support with a strong buying pressure : typically a spring setup.
The fact that we have some stop hunt spot here into what's can be an accumulation pattern of Wyckoff (I don't take in count the flush because it's clearely an excess of market between volatily, leverage, panic, high spread...) make me think that we will assist to an increased of volatility on the support which will probably occurs to a spring. If it's the case it can take two shapes, one construct with a strong selling pressure and a V-Turn on the support area followed by a strong buying pressure. Or as usual it result in a flush which will go much lower than the support in an excess of volatilty. If, unfortunatly, there is a lot of leverage positions on the stop hunt spot, it will probably be a flush, and loose around 3-4% in a few minutes creating a movement of panic.
WHERE IS THE SUPPORT TO TARGET AN ENTRY ?
If we have buying signal here on the support lines (with buying volumes !), it could be a nice spot for a long, targeting $51,200, no more for the moment and with a small capital exposure.
If we go for a flush spring : just stay away of it, there isn't money to do when you can't bring order in chaos.
If we go for a construct spring : We will probably see the support to target for an entry between $43,300 and $41,800 (gold rectangle area on chart). It's even better that we can do it without reintegrate the down channel, and also because their is a major support zone just below (silver rectangle area on chart).
You can see this setups with gray arrows on chart.
Like always : "Making money in trading is math and respect of strategy, so never let your emotions guide you in uncomfortable positions". Stay patient for opportunities.
PS : Apologize for my english, I do my best. Don't forget to like, follow or even comment if you like, it give me the strength to continue ! I wish you all success you need for 2022, on every side !
WHAT WE HAVE ?
- Down channel break by the top, one pullback already made, not reintegrated for the moment.
- Accumulation pattern of Wyckoff, volumes into it are stables so it can occur to a spring.
- 6 Stop hunt spots to exploit for institutionnals on one of the more leverage assets.
WHAT I THINK ?
We've seen in last analysis that we didn't had buying volume, so how can we find some ? Two possibilities here, or we retest the support until we absorbed all sellers and buyers overwhelmed them. Or we strongly move down to exhaust sellers and erase them on the next support with a strong buying pressure : typically a spring setup.
The fact that we have some stop hunt spot here into what's can be an accumulation pattern of Wyckoff (I don't take in count the flush because it's clearely an excess of market between volatily, leverage, panic, high spread...) make me think that we will assist to an increased of volatility on the support which will probably occurs to a spring. If it's the case it can take two shapes, one construct with a strong selling pressure and a V-Turn on the support area followed by a strong buying pressure. Or as usual it result in a flush which will go much lower than the support in an excess of volatilty. If, unfortunatly, there is a lot of leverage positions on the stop hunt spot, it will probably be a flush, and loose around 3-4% in a few minutes creating a movement of panic.
WHERE IS THE SUPPORT TO TARGET AN ENTRY ?
If we have buying signal here on the support lines (with buying volumes !), it could be a nice spot for a long, targeting $51,200, no more for the moment and with a small capital exposure.
If we go for a flush spring : just stay away of it, there isn't money to do when you can't bring order in chaos.
If we go for a construct spring : We will probably see the support to target for an entry between $43,300 and $41,800 (gold rectangle area on chart). It's even better that we can do it without reintegrate the down channel, and also because their is a major support zone just below (silver rectangle area on chart).
You can see this setups with gray arrows on chart.
Like always : "Making money in trading is math and respect of strategy, so never let your emotions guide you in uncomfortable positions". Stay patient for opportunities.
PS : Apologize for my english, I do my best. Don't forget to like, follow or even comment if you like, it give me the strength to continue ! I wish you all success you need for 2022, on every side !
