Wow. What a rally. Looking at different indicators and charting methods, I've found some confluence I'd like to share with you.
1. We got rejected at what would appear to be some resistance based on a . This seems to be the new hot thing these days but in this case it's actually looking good. We got rejection at the top descending resistance line of the which leads me to believe it's an accurate measurement of price action and control.
2. Is 71.3% a real thing? I've now seen this level get defended more times than I'd like to admit. We actually got rejection there on DJI which leads me to believe since I'm seeing this across multiple asset classes now (crypto and traditional markets) that this is a level I need to pay attention to and take seriously.
3. Assuming we go down from here, we should be targeting at least $24,000 conservatively but a revisit of the median is not out of the question which would be a decent thought for a reversal. Will this happen? Only time will tell. Nobody has a crystal ball.
4. We're trading above the 200 day moving average and found some support there on Friday, so we've got a tight zone here.
5. Last thing to note - I'm using an overlay that detects and you can see (red and green arrows) that it has done a decent job for past performance. Well, it just turned last Thursday. This further supports my theory of some downside in the near future.
No Trade Zone: $25,000 - $25,400
Breakout above or below will be the trade. I am leaning at this zone but trade the safe and probable trade, not the hopeful trade. If you weren't able to get short at $25,400 then you need to wait for a confirmed breakout in my opinion.
Trade safely friends!
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