The 4 hour chart shows what I have been watching for a while now -- potential repetition of the March downward movement. We have talked about it before but decided it wasn't happening when the previous consolidation did not create the triangle and price didn't continue up. However, taking a look once more suggests that maybe I was a bit hurried in finding that bottom. So, for the sake of completeness, I'm going to map out the similarities for us to watch. As I mentioned yesterday, this weekend's activity was similar to the weekend of April 6-8 including the low volume, and now shorts build up that we are seeing. April 12th was the big short squeeze and we are currently seeing a ridiculous build up of shorts once more. If so, then we can expect the shorts to liquidate tomorrow and price to target the $8800 area which would put it at the descending resistance line of the large symmetrical triangle, as well as in the thin area of the daily cloud if price reaches that target in the next 1-2 weeks.
