In my last update yesterday I mentioned that we broke above a significant trend resistance of the overall drop. The larger trend line is now holding well as support. The 1H bearish divergence played out when the price dropped to $4177 at the larger trendline support (I mentioned we would drop to $4150-$4180 and then resume the uptrend after a 38.1 fib retracement).
We may have a potential inverse head and shoulders on the 15 min chart and I'm expecting a retest of the wedge resistance around $4600 where price may drop back to that trend line and the larger channel support or if the uptrend continues, we may potentially have a short squeeze to our $4800 resistance and if we find support at the base of the steeper ascending channel, we may even reach $4900 - $5k before reversal.
If price drops back to the wider channel support, then it might still be setting up for a larger bear flag.
CME futures expire today as well as our monthy close so I'm expecting volatility today. Daily RSI is back above 30 so may even start to become relevant again besides signalling the odd divergence. Volume has been low and may be a calm before the storm.
Good luck and happy trading!
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We may have a potential inverse head and shoulders on the 15 min chart and I'm expecting a retest of the wedge resistance around $4600 where price may drop back to that trend line and the larger channel support or if the uptrend continues, we may potentially have a short squeeze to our $4800 resistance and if we find support at the base of the steeper ascending channel, we may even reach $4900 - $5k before reversal.
If price drops back to the wider channel support, then it might still be setting up for a larger bear flag.
CME futures expire today as well as our monthy close so I'm expecting volatility today. Daily RSI is back above 30 so may even start to become relevant again besides signalling the odd divergence. Volume has been low and may be a calm before the storm.
Good luck and happy trading!
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