Trade setup: Following a bullish breakout of Channel Down pattern, price rallied to $1,700, which is a stiff resistance area as it also lines up with 200-day moving average (SMA200). Wait for price to 1) break above $1,700, or 2) pull back near $1,500 support for a swing entry. If it’s able to break above $1,700, price could revisit $2K. Short- and Medium-term trends have inflected bullish as well. Breaking above $1,700 would also make a Higher High (above the swing high in mid-september), which would also confirm Uptrend. (set a price alert).
Pattern: Price was trading in a Channel Down pattern. With emerging patterns, traders who believe the price is likely to remain within its channel can initiate trades when the price fluctuates within its channel trendlines. With complete patterns (i.e. a breakout) – initiate a trade when the price breaks through the channel’s trendlines, either on the upper or lower side. When this happens, the price can move rapidly in the direction of that breakout.
Trend: Uptrend on Short- and Medium-Term basis and Downtrend on Long-Term basis.
Momentum is Bullish but inflecting. MACD Line is above MACD Signal Line and RSI is above 55 but momentum may have peaked since MACD Histogram bars are declining, which suggests that momentum is weakening.
OBV (On Balance Volume): is rising, indicating that volume on Up days is greater than volume on Down days. Hence, demand (buyers) exceeds supply (sellers).
Support and Resistance: Nearest Support Zone is $1,500 (previous resistance), then $1,250. The nearest Resistance Zone is $1,700, then $2,000.
Pattern: Price was trading in a Channel Down pattern. With emerging patterns, traders who believe the price is likely to remain within its channel can initiate trades when the price fluctuates within its channel trendlines. With complete patterns (i.e. a breakout) – initiate a trade when the price breaks through the channel’s trendlines, either on the upper or lower side. When this happens, the price can move rapidly in the direction of that breakout.
Trend: Uptrend on Short- and Medium-Term basis and Downtrend on Long-Term basis.
Momentum is Bullish but inflecting. MACD Line is above MACD Signal Line and RSI is above 55 but momentum may have peaked since MACD Histogram bars are declining, which suggests that momentum is weakening.
OBV (On Balance Volume): is rising, indicating that volume on Up days is greater than volume on Down days. Hence, demand (buyers) exceeds supply (sellers).
Support and Resistance: Nearest Support Zone is $1,500 (previous resistance), then $1,250. The nearest Resistance Zone is $1,700, then $2,000.