Don't let the swift recovery fool you, there are still quite a few obstacles before a true trend reversal.
Price has to cross the 4H cloud (rather strong indicator), so far it looks favourable, the cloud is weak at that point.
Afterwards, the price will hit the trendline, and only after crossing it will this ...
Attention Zone, major barriers to cross :
If crossed, this will be a strong bullish signal already rising with lagging span and reversal.
Failure to breach will result in a bounce back towards the bottom of the channel.
Succesful exit from the cloud, and ichimoku indicators are neutral/bullish, with good support from the new upward trendline we can expect however a likely bullish outcome in the fight to pierce the 650 resistance that is still holding so far. If we breach, the next key level before the top will be around 670 .
Trapped in the cloud :
Conitnuation of my previous chart, we failed to breach the strong resistance around 650 and were sent down towards retesting the support zone. As the support at 605 is solid and 615 is holding, i believe we will have most likely a rebound towards 650. If the bear pressure greatly increases ...
After a rather strong retracement, it looks like we touched the bottom of this trend around 605.
We re now rebounding , we failed to breach the 650 strong zone wich is an old support turned into resistance but is also the top of the cloud .
If we succeed breaching the cloud in a future attempt we could emerge in ...
In my previous chart i laid the setup for a potential breakout, i didnt foresee such powerful force .
It completely obliterated my target of 645 in a good way.
Now that the hype is over, the base is set for the uptrend continuation , we are out of the "gox scandal downtrend" and trying to penatrate the "old" more ...
After a long series of crash following the MT.Gox scandal, we are now in a period of calm, exiting the cloud sideways.
The long term bearish trend is still leading the price, but free of the cloud , there is a potential sideways breakout looming. Failure to breach the trendline will probably push the price down ...