This is one of the messiest charts I have analyzed. There are reasons to be bullish,there are reasons to be bearish time for me to create a story out of all of this. I color coordinated every on the chart for you too keep track.
The cup has formed but the second half of the handle has yet to form. I believe the 2nd half will form once we finish forming the B wave.
However, we just formed a Death Cross which is historically a bearish trend, however with Wave B forming, the 55 EMA and the 200 EMA are close enough to where a small move up is enough to form a Golden Cross (bullish cross) that would lead us up to the 1345-1350 resistance AREA ( I don't believe one fixed price can act as support or resistance rather its an area). Once we hit that resistance area it will be TBD as to what happens from there because its a crucial historical resistance/support area.
Another reason I am confident that we will test the 1345-1350 area once more because of the RSI on the 4 HR time frame. It is bullishly diverging as you can see here:
Note : If we do not break the 1345-1350 resistance area I believe a second death cross will form as we form Wave C which will ultimately have us going downhill for a short while. If we break and hold above resistance we will bullish for that time period as we would be in a golden crossover trading above the 200 EMA with 55 acting as resistance or with us barely holding above the 55 EMA and having it act as support, but it would be a failed wave as the B wave will have exceeded top of wave 5 if that happens. If we do reach the 1345-1350 area which I anticipate we will have successfully formed a cup and handle pattern.
MAJOR NOTE: I am NOT a financial adviser NOR do I provide any financial advice. Trade at your OWN risk. This is a learning opportunity for you and me.
The cup has formed but the second half of the handle has yet to form. I believe the 2nd half will form once we finish forming the B wave.
However, we just formed a Death Cross which is historically a bearish trend, however with Wave B forming, the 55 EMA and the 200 EMA are close enough to where a small move up is enough to form a Golden Cross (bullish cross) that would lead us up to the 1345-1350 resistance AREA ( I don't believe one fixed price can act as support or resistance rather its an area). Once we hit that resistance area it will be TBD as to what happens from there because its a crucial historical resistance/support area.
Another reason I am confident that we will test the 1345-1350 area once more because of the RSI on the 4 HR time frame. It is bullishly diverging as you can see here:
Note : If we do not break the 1345-1350 resistance area I believe a second death cross will form as we form Wave C which will ultimately have us going downhill for a short while. If we break and hold above resistance we will bullish for that time period as we would be in a golden crossover trading above the 200 EMA with 55 acting as resistance or with us barely holding above the 55 EMA and having it act as support, but it would be a failed wave as the B wave will have exceeded top of wave 5 if that happens. If we do reach the 1345-1350 area which I anticipate we will have successfully formed a cup and handle pattern.
MAJOR NOTE: I am NOT a financial adviser NOR do I provide any financial advice. Trade at your OWN risk. This is a learning opportunity for you and me.