Strong accumulation in the last 8 months. Price forming a nice harmonic patterns from bottom up.
Price broke above the daily resistance and 50 MA (thin orange line) from the Dec low all the way to the 8127 daily resistance level where we got rejected after a bullish retest of the 50 MA and daily horizontal support level.
Price action is bullish with series of higher high and higher low formation, and a bullish potential cup and handle formation, an indication that accumulation is getting stronger.
The 6780-6526 is presently providing a nice amount of support.....we have a confluence of support @ 6780-- uptrend line support and 50 day MA, and another confluence of support just below at 6528-- 0.786 fib retracement level and the horizontal support level.
Price broke slightly below the 50 day MA and uptrend line support, but found support at the 0.786 fib area.
All things being equal, I do expect a close above the uptrend line support and 50 day MA, or a bounce at the 0.786 fib level.
If price breaks below the daily support level and the 0.786 fib level, our next support is the yearly low @ 6085.
If we get a bounce at any of the confluence of support area mentioned above (50 day MA, uptrend line support, 0.786 fib, and daily horizontal support level), targets are:
7127 (0.5 fib level)
7402 (0.382 fib level)
8147 (previous resistance),
and ultimately 10409 if the cup and handle formation plays out.
Price broke above the daily resistance and 50 MA (thin orange line) from the Dec low all the way to the 8127 daily resistance level where we got rejected after a bullish retest of the 50 MA and daily horizontal support level.
Price action is bullish with series of higher high and higher low formation, and a bullish potential cup and handle formation, an indication that accumulation is getting stronger.
The 6780-6526 is presently providing a nice amount of support.....we have a confluence of support @ 6780-- uptrend line support and 50 day MA, and another confluence of support just below at 6528-- 0.786 fib retracement level and the horizontal support level.
Price broke slightly below the 50 day MA and uptrend line support, but found support at the 0.786 fib area.
All things being equal, I do expect a close above the uptrend line support and 50 day MA, or a bounce at the 0.786 fib level.
If price breaks below the daily support level and the 0.786 fib level, our next support is the yearly low @ 6085.
If we get a bounce at any of the confluence of support area mentioned above (50 day MA, uptrend line support, 0.786 fib, and daily horizontal support level), targets are:
7127 (0.5 fib level)
7402 (0.382 fib level)
8147 (previous resistance),
and ultimately 10409 if the cup and handle formation plays out.
