Good morning, traders. Price may have bottomed out this morning at $10033 which is just below the general low I mentioned that price may hit before reversing back up. I'm not a fan of the expanding volume on the individual drops, but overall supply volume has continues to contract significantly through the entire move down from August 25th's swing high suggesting, at minimum, a bounce. The 15M RSI printed bullish divergence at this morning's swing low but its important for traders to watch for RSI to push through its resistance on the 15M, 30M, or H1 TFs.
Speaking of the H1, price printed a nice bullish hammer reversal which was confirmed by the previous candle's large green candle body. The initial target is the ~$10360 level with the possibility of a larger move up to ~$10660 following that. As we can see, price is currently held in check by the H1 21 EMA. If price can close above that EMA and the descending resistance, then we need to see continuing expanding demand volume and increasing candle spread as price moves up. If we don't see that, then traders should proceed with caution as price is likely to turn around and head back down again.
The secondary, higher, target takes price above the descending channel resistance and triangle resistance, setting up a target of the ~$12600 level, just above the current H1 R4 pivot. At that point, $14200 becomes much more likely. But traders should be taking this one step at a time until they see confirmation of demand in control. And, as mentioned above, that confirmation will come in the form of expanding demand volume and increasing candle spread as price rises. Never trade what you want to happen; always trade what the chart is telling you is happening.
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Be sure to hit the "thumbs up!"
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
You can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own. When you do, be sure to explore the other TFs to see what I'm watching on those TFs.
Speaking of the H1, price printed a nice bullish hammer reversal which was confirmed by the previous candle's large green candle body. The initial target is the ~$10360 level with the possibility of a larger move up to ~$10660 following that. As we can see, price is currently held in check by the H1 21 EMA. If price can close above that EMA and the descending resistance, then we need to see continuing expanding demand volume and increasing candle spread as price moves up. If we don't see that, then traders should proceed with caution as price is likely to turn around and head back down again.
The secondary, higher, target takes price above the descending channel resistance and triangle resistance, setting up a target of the ~$12600 level, just above the current H1 R4 pivot. At that point, $14200 becomes much more likely. But traders should be taking this one step at a time until they see confirmation of demand in control. And, as mentioned above, that confirmation will come in the form of expanding demand volume and increasing candle spread as price rises. Never trade what you want to happen; always trade what the chart is telling you is happening.
_____________________________________________________________
Be sure to hit the "thumbs up!"
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
You can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own. When you do, be sure to explore the other TFs to see what I'm watching on those TFs.