After being rejected multiple times at a strong level of confluence (The purple box), price has also broken through a major trend line that started on the 12th of March. The 50MA was acting as a dynamic support until it too was broken a couple of days ago. The last line of defence is this short term trend line which has been holding strong. The RSI has crossed below 53 on the daily, 53 on the oscillator seems to be a more important cross than the typical 50. There has been a lot of long wicks to the downside in the recent weeks which could suggest the bears are slowly showing signs of strengths which could lead to a bear trap. Volume has been average of late and would need a significant surplus to break past the strong psychological level at 10k. Could we see yet another retest of 7k before a final push to 10k?
Short Trade:
Entry: $8,816 - Below the breakout of that short term trend line , could of placed it a little bit higher but keeping it there to try and ensure I don't get stop hunted
Stop loss: $9,200 - Would mean that price has gone back above the support level making the trade wrong
Target #1: $8,901 - Major level of support
Target #2: $7,712 - Top of an order block
Target #3: $7,200 - Strong area of confluence
Short Trade:
Entry: $8,816 - Below the breakout of that short term trend line , could of placed it a little bit higher but keeping it there to try and ensure I don't get stop hunted
Stop loss: $9,200 - Would mean that price has gone back above the support level making the trade wrong
Target #1: $8,901 - Major level of support
Target #2: $7,712 - Top of an order block
Target #3: $7,200 - Strong area of confluence