So as we've all seen this past few weeks, the market has been extremely overextended. Things from this point get interesting.
The following indicators/signals have triggered my interest on the 2 day chart:
RSI is officially bearishly diverging (Higher High of price, Lower High of RSI), and also broke a month old support. This means momentum is shifting in...
Extremely overbought - RSI bearishly diverging.
MACD histogram is declining, buyers close to crossing under sellers.
Bearishly engulfing candlesticks.
Chose target based on fibonacci retracement tool, and the approximate area where the 13 EMA could be (purple EMA) which it could touch down to. Conservative, but seems likely given the supporting indicators....
Support for Hypothesis:
Hidden Bearish divergence on Chart and RSI
Bearish Engulfing Red candles, with a Huge bear wick reaching for the stars ;)
RSI now in a descending channel
Volume LARGELY above average on 4 hour
Elliot Wave 5 wave structure due for ABC correction
What do you think? LMK ;)
magimuffin here. Never done one of these, but I have been taking TA seriously for almost a year now. Would love to hear your thoughts.
I see this movement as part of a larger elliot wave ABC correction upwards, that has the potential to come back down:
The following potentially support my hypothesis, and are...