I have been watching this all day across various time frames. I was expecting another low HOWEVER..
It appears that with the pending close of the current 4 hour candle we may finally be clear of the downtrend channel.
On the daily the MACD has crossed and everything appears to be bullish - please correct me if I am wrong.
Looking on the 15 minute chart we seem to be making higher higher and higher lows. Again positive stuff.
I think the proof will be when the USA come online in about 3 hours (Im in the UK) so it appears the European bulls have laid the foundations ready for the next bull run.
Please do not trade of this as it is just my thoughts.
Update on this two hours after posting. We appear to be moving sideways on low volume which is somewhat disappointing given the other indicators.
To me that is saying that the buyers aren't really supporting this price level. I guess many hesitant and may be waiting for a re-test of a lower level. Possibly $6,000 and a stronger bounce from that level for a greater return.
Other than the volume which shows a lack of commitment from buyers everything is looking bullish. It just needs the buyers.
For me all eyes are on 14:00 when the American buyers come online. Once of two things will occur today:
1 - More and more buyers will notice we have broken the downtrend channel, are above the 50EMA (which has until now acted as resistance) and use the (daily) MACD as confirmation it is now time to buy
2 - There will be more indecision and we will continue to work our way along the down trend line which will cause a sell off and send us to a lower price point
Remember that there is still a ton of resistance above us to break through - Just draw lines from the previous support levels which have now become resistance.
Finally no matter what happened BUYER BEWARE of profit taking anywhere above $10,000 which could drive price back down again. Think of it this way - If you picked up at the last 'bottom' at $6,000 wouldn't you like to realise some profit at the psychological $10,000 level and hope to rinse and repeat. Just a thought.
To me that is saying that the buyers aren't really supporting this price level. I guess many hesitant and may be waiting for a re-test of a lower level. Possibly $6,000 and a stronger bounce from that level for a greater return.
Other than the volume which shows a lack of commitment from buyers everything is looking bullish. It just needs the buyers.
For me all eyes are on 14:00 when the American buyers come online. Once of two things will occur today:
1 - More and more buyers will notice we have broken the downtrend channel, are above the 50EMA (which has until now acted as resistance) and use the (daily) MACD as confirmation it is now time to buy
2 - There will be more indecision and we will continue to work our way along the down trend line which will cause a sell off and send us to a lower price point
Remember that there is still a ton of resistance above us to break through - Just draw lines from the previous support levels which have now become resistance.
Finally no matter what happened BUYER BEWARE of profit taking anywhere above $10,000 which could drive price back down again. Think of it this way - If you picked up at the last 'bottom' at $6,000 wouldn't you like to realise some profit at the psychological $10,000 level and hope to rinse and repeat. Just a thought.