On the 4hr charts we're in an ascending channel. Currently we have descending volume profile, a lower high within the channel and descending RSI indicate it may break to the downside to test support once again and then possibly continue the uptrend.
If we break downwards from the channel, we have fib support at 3820 and then major support between 3500-3600. Given we've already tested lower support levels at around 3000 and it was strongly rejected in spite of the China ban, I don't see us going back there. If we do make it to the 3k area for support we reevaluate the short-to-mid-term trend.
If we see continuation of the ascending channel, the next major resistance point to be retested is 4100. If we break through this it will form support and push us back to 4500 and 5000 to the end of the month.
Right now, my bet (bar any unforeseen FA events) would be on a pullback to 3600 slingshotting us back to 5k by the end of the month.
If we break downwards from the channel, we have fib support at 3820 and then major support between 3500-3600. Given we've already tested lower support levels at around 3000 and it was strongly rejected in spite of the China ban, I don't see us going back there. If we do make it to the 3k area for support we reevaluate the short-to-mid-term trend.
If we see continuation of the ascending channel, the next major resistance point to be retested is 4100. If we break through this it will form support and push us back to 4500 and 5000 to the end of the month.
Right now, my bet (bar any unforeseen FA events) would be on a pullback to 3600 slingshotting us back to 5k by the end of the month.
Comment:
First support zone reached at bottom of Ichimoku cloud. Take some profits. Lets see if we make second support zone.
Trade closed: target reached:
Reached first support for re-entry. Didn't make it to second support.