Hello Everyone!
Let's take a look at the 4h ETH/EUR chart.
From what we can see right now, it looks like the right shoulder formation is about to complete very soon.
We can see that we are currently resting against the uptrend support (dotted light blue line), if this were to get violated, we will probably see a drop directly to the green line below (Trendline Support Zone #3) - or close to the white support just below it - then a continious drop further to around the Trendline Support Zone #1.
But If we manage to climb along the uptrend support extensivly (Green Zone) the H&S will be invalidated, as we need to touch the neckline to complete the pattern.
Red Box = Price movment inside the box = confirmation.
Entry zone Green box, watch the trajectory of the reversal against support zones/trendline support zones.
Let's take a look at the 4h ETH/EUR chart.
From what we can see right now, it looks like the right shoulder formation is about to complete very soon.
We can see that we are currently resting against the uptrend support (dotted light blue line), if this were to get violated, we will probably see a drop directly to the green line below (Trendline Support Zone #3) - or close to the white support just below it - then a continious drop further to around the Trendline Support Zone #1.
But If we manage to climb along the uptrend support extensivly (Green Zone) the H&S will be invalidated, as we need to touch the neckline to complete the pattern.
Red Box = Price movment inside the box = confirmation.
Entry zone Green box, watch the trajectory of the reversal against support zones/trendline support zones.
Comment:
We will rely on bitcoin to make the decision, if BTC pulls ahead there is a good chance that we will stick to the uptrend line.
Comment:
Looks like we are seeing upward pressure after the dip to 680, but we have Heavy resistance at 700. Either way a breakout is looking more and more likely, taking bitcoins recent price action into account I'm regaining bullish confidence. But to confirm this we need a break to the upside and reach the green zone, following the uptrend support line,
Comment:
Zommed in, looks good
Comment:
Comment:
A lot of mixed signals,
if this inverse H&S plays out we should see this second drop extend a bit further, then rally back up to the neckline. The blue dotted trendline that i have in my original chart should stay intact as the head of the inverse pattern is touching the trendline. If it remains intact we should see a rally to around 720-730
if this inverse H&S plays out we should see this second drop extend a bit further, then rally back up to the neckline. The blue dotted trendline that i have in my original chart should stay intact as the head of the inverse pattern is touching the trendline. If it remains intact we should see a rally to around 720-730
Comment:
The right inverse shoulder is getting dangerously low here, however the price on gdax is holding a bit better than bitstamp so i would say that that the inverse HS is still at play here. See my screenshot above/gdax dipped to 681 which is just short of the head, we are currently at 688, a dip to 680 or lower would invalidate the inverse HS and put the large HS in play.
Comment:
Inverse HS is invalidated as the possible shoulder extended further than the head, from the looks by it we are in a downtrend channel leading to the neckline of the large HS.
Comment:
Back to the fear business;
Trendline Support Zone #1 = Touched = Selling temporarily halted
(We may do a short lived bounce from here.)
Next move,
Apply pressure to support below, larger bounce.
Maybe rally back to the neckline, then dip to target.
Trendline Support Zone #1 = Touched = Selling temporarily halted
(We may do a short lived bounce from here.)
Next move,
Apply pressure to support below, larger bounce.
Maybe rally back to the neckline, then dip to target.
Comment:
Support hit, probably getting shattered, next support is more likely to hold, lets see how this unfolds.
Comment:
trendline support #2 getting peeled already. This drop is killing it.