Bitcoin to 7300 While Markets Follow Lower, Except for Gold!
A great deal of uncertainty continues to plague the markets. It is very notable in how markets are being traded during the session. Today, I want to run through a number of charts before Fed Chair Jerome Powell speaks tomorrow. Let's touch upon Bitcoin, the Euro Stoxx 50 (EU50), the Invesco QQQ Trust (QQQ) and SPDR Gold Shares (GLD).
Markets Finally Signaling Reversal?
And for the 100th time we call the top! Yea, that was a joke. All I know is that markets are looking top heavy. A larger reversal pattern is more likely in play. Though, we have no knowledge of yet. In the interim all we can do is play what the market has given us at the close. Let's begin with the EU50.
I touch upon this chart a few day's ago when I noticed that the EU50 was vastly under performing U.S. markets. See the 4-hour chart below.
Currently, the EU50 is breaking down from a bearish pennant. Support is around the low 2770's. We will continue watching Europe closely this week. Keep in mind Europe is easing restrictions and the economy is opening up. The economy is still vulnerable to closure. Bias: Bearish.
Next, let's review the daily close of the QQQ. Below is the daily chart. Since the March low, I believe today will likely mark the most bearish daily candle close of the entire rally. Today produced a bearish engulfing candle, engulfing the previous two days. Of course now we need follow through.
On top of the bearish engulfing candle is the rising wedge pattern. A few days ago I mentioned that we could see a throw over. A throw over is a common occurrence and happens when price over shoots the ascending boundary briefly. Although still early to confirm whether this is a real reversal, I wouldn't be buying any dip just yet. Bias: bearish.
Last bearish chart. I promise. Here is Bitcoin's 4-hour chart.
Yes, I know we are heading to the moon and Bitcoin should be valued at 100k. But let's press the breaks a bit. Bitcoin has rallied over 100% since the March low. If you hadn't taken profits, I am sorry. Go ahead and buy the dip around 7300 support.
However, If Bitcoin continues to consolidate at these levels I will begin to flip bullish for a relief rally. For now....Bias: Bearish.
GOLD
I promise I am not a permabear. My proof? Below on the daily GLD chart. I am not going to kid you, the longer this pennant consolidates the more nervous I am getting. Tomorrow, I do expect the pennant consolidation to resolve itself. The Fed Chair words could determine the trend direction of Gold.
Currently, I am long GLD. The close was promising today. I'll be making a decision whether to hold or sell tomorrow. Currently...Bias: Bullish.
Tomorrow is HUGE
The markets are either consolidating or at resistance. If you are trading inverse ETFs they are at support. Tomorrow when the Fed Chair speaks he will move markets. Regardless of what happens, there will be ample opportunities available afterward. Talk to you all tomorrow!
Markets Finally Signaling Reversal?
And for the 100th time we call the top! Yea, that was a joke. All I know is that markets are looking top heavy. A larger reversal pattern is more likely in play. Though, we have no knowledge of yet. In the interim all we can do is play what the market has given us at the close. Let's begin with the EU50.
I touch upon this chart a few day's ago when I noticed that the EU50 was vastly under performing U.S. markets. See the 4-hour chart below.
Currently, the EU50 is breaking down from a bearish pennant. Support is around the low 2770's. We will continue watching Europe closely this week. Keep in mind Europe is easing restrictions and the economy is opening up. The economy is still vulnerable to closure. Bias: Bearish.
Next, let's review the daily close of the QQQ. Below is the daily chart. Since the March low, I believe today will likely mark the most bearish daily candle close of the entire rally. Today produced a bearish engulfing candle, engulfing the previous two days. Of course now we need follow through.
On top of the bearish engulfing candle is the rising wedge pattern. A few days ago I mentioned that we could see a throw over. A throw over is a common occurrence and happens when price over shoots the ascending boundary briefly. Although still early to confirm whether this is a real reversal, I wouldn't be buying any dip just yet. Bias: bearish.
Last bearish chart. I promise. Here is Bitcoin's 4-hour chart.
Yes, I know we are heading to the moon and Bitcoin should be valued at 100k. But let's press the breaks a bit. Bitcoin has rallied over 100% since the March low. If you hadn't taken profits, I am sorry. Go ahead and buy the dip around 7300 support.
However, If Bitcoin continues to consolidate at these levels I will begin to flip bullish for a relief rally. For now....Bias: Bearish.
GOLD
I promise I am not a permabear. My proof? Below on the daily GLD chart. I am not going to kid you, the longer this pennant consolidates the more nervous I am getting. Tomorrow, I do expect the pennant consolidation to resolve itself. The Fed Chair words could determine the trend direction of Gold.
Currently, I am long GLD. The close was promising today. I'll be making a decision whether to hold or sell tomorrow. Currently...Bias: Bullish.
Tomorrow is HUGE
The markets are either consolidating or at resistance. If you are trading inverse ETFs they are at support. Tomorrow when the Fed Chair speaks he will move markets. Regardless of what happens, there will be ample opportunities available afterward. Talk to you all tomorrow!
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