We are having here a very well structured trade idea, exploiting the confluence of high important technical factors, mean reverting stance, and extreme positioning in the Oil and Gas space thanks for a Long Inflation lean by most investors this year.
Into year end and preparing for 2023, Fact is that after such a good performance some will be tempted to take...
Yesterday's price action (long black candle - BEARISH ENGULFING !) which pushed sharply down the BTC towards a low of 37'701 (nearly filling the TRIANGLE TARGET @ 37'581), triggered a BULLISH DIVERGENCE...
Therefore, on short term and it'is exactly what is going on, a recovery should take place; nevertheless and in order to confirm a TACTICAL REVERSAL, the BTC...
H4 : Last long black candle triggered a BEARISH ENGULFING PATTERN,
with a closing level below MBB, TS and KS !!!
Moreover, for the first time the closing level of this time frame was
also below the tactical uptrend support line.
In addition, technical indicators do not show recovery signal (s) yet.
Watch H1 price action for...
H1 : Failure to recover and and hold above the ongoing downtrend line resistance and MBB triggered further selling pressure !
Last closing candle was below former low closing levels and below
MBB, TS and KS !
No signs of any reversals in all indicators
Watch next H1 closing for validation or invalidation of the ongoing bearish price...
D1 : The ongoing bearish tactical price action is currently triggering a long black bearish candle...
In addition the first significant support is now, not far away, TS @ 52134
A failure to hold above this important support level, would likely trigger further downside move in a
acceleration phase mode, putting the focus on the 23.6% Fib ret @...
M15 : Watch Mid Bollinger Band as leading indicator and very short term downtrend line resistance.
Interesting to note that the 61.8% Fib ret coincides also with the clouds resistance zone.
On this time frame, a recovery and, if hold above the clouds, would neutralise the current ongoing bearish price action.
Watch M5 for intermediate...
H4 : Recent price action is showing an attempt to breakout the Mid Bollinger Band support (wait for confirmation !)
Indeed, from the recent top we can see 2 bearish black candles and the ongoing candles will validate or invalidate the
ongoing tactical bearish price action which is for the time being in a 58350-54500 trading range.
If MBB hold...
