GOOD MORNING TRADERS!
As you will note from my previous post two days ago, we are approaching the 50% retracement level from the May 2021 crash. Though this 50% level isn't technically a TA level, it is a very well known and respected retracement citing DOWS THEORY. If we are able to break this light resistance level at around $3124 then it would seem we are due for a major local jump on the road to the .618 retracement level around $3428.
"Looking left" on the chart you can see that historically it took a few attempts to break through this $3124 level, and was range bound for nearly two weeks prior to definitively legging up to the next range.
It should be of note that the RSI is beginning to look oversold, so as we may test levels above $3124, it wouldn't be shocking for there to be a correction down towards the $2850-3000 level before running back up. If it does this would be a great entry point while the RSI is reset and positive momentum build on the MACD.
Golden entry: $2800
Realistic entry: ~ $3k
1st target: $3124
2nd target: $3428
3rd target: $3860
We also look to be forming one of my favorite harmonics that I will update later this week if it continues to form.
PLEASE LIKE/FOLLOW IF YOU AGREE, and lets discuss what you see in this exciting retrace!
As you will note from my previous post two days ago, we are approaching the 50% retracement level from the May 2021 crash. Though this 50% level isn't technically a TA level, it is a very well known and respected retracement citing DOWS THEORY. If we are able to break this light resistance level at around $3124 then it would seem we are due for a major local jump on the road to the .618 retracement level around $3428.
"Looking left" on the chart you can see that historically it took a few attempts to break through this $3124 level, and was range bound for nearly two weeks prior to definitively legging up to the next range.
It should be of note that the RSI is beginning to look oversold, so as we may test levels above $3124, it wouldn't be shocking for there to be a correction down towards the $2850-3000 level before running back up. If it does this would be a great entry point while the RSI is reset and positive momentum build on the MACD.
Golden entry: $2800
Realistic entry: ~ $3k
1st target: $3124
2nd target: $3428
3rd target: $3860
We also look to be forming one of my favorite harmonics that I will update later this week if it continues to form.
PLEASE LIKE/FOLLOW IF YOU AGREE, and lets discuss what you see in this exciting retrace!
