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Gonna make this Idea short since the chart will speak for itself but following the weeks decline we marked down our new Fib levels as well as the trend line of that which coincides with our descending channel pattern and shows the shift that the market’s dealt.
Kick off
As the weeks trading actions have shown, we have formed a new strong resistance at $35,500 with us just barely falling bellow $31,000 before we saw that strong support kick in.
Our channels
You can see how whenever we exited out of that descending channel we would break out before we’d get rejected close to that $35,500 mark which would lead then to us falling again and seeing those pull downs occur. At our current point on the chart you can see how we just barely managed to break out of the descending channel however we are still dangerously close in my opinion. Close enough to get dragged back into that channel that is which should be noted. I have also added circles to highlight those channel exit and entry points and what preceded them. So by that you can figure we’ll dump again if we enter that channel based on past price action. Also to watch is our 20 and 50 day EMA to see if we’ll get another crossover or if the 20 day will fall/continue to hover below that 50 day which as well will be bearish if that continues.
Threat still looms
We are still close enough to be dragged down into that zone again as the market contemplates how the Fed will approach it’s inflation tactic looking to see on whether it will take an aggressive or softer approach . An aggressive approach would be a few 50 bp rate hikes which wouldn’t be easy of course but would allow the market to recover faster and that is what investors are looking to see in the coming weeks.
To note
If we enter back into that support horizontal zone that is highlighted then we definitely will see strong selling pressure kick in again and we move below we’ll see a drop if not a dramatic drop below $31,000. What we are looking to see is whether or not the market can keep itself held above that support during this likely to follow volatile month or if it’ll give in and fall like gravel.
Thank you guys for tuning in and again leave a like and follow, I’m not perfect just like anybody else but I always give my best and most formulated Ideas I can figure.
~ Rock
Gonna make this Idea short since the chart will speak for itself but following the weeks decline we marked down our new Fib levels as well as the trend line of that which coincides with our descending channel pattern and shows the shift that the market’s dealt.
Kick off
As the weeks trading actions have shown, we have formed a new strong resistance at $35,500 with us just barely falling bellow $31,000 before we saw that strong support kick in.
Our channels
You can see how whenever we exited out of that descending channel we would break out before we’d get rejected close to that $35,500 mark which would lead then to us falling again and seeing those pull downs occur. At our current point on the chart you can see how we just barely managed to break out of the descending channel however we are still dangerously close in my opinion. Close enough to get dragged back into that channel that is which should be noted. I have also added circles to highlight those channel exit and entry points and what preceded them. So by that you can figure we’ll dump again if we enter that channel based on past price action. Also to watch is our 20 and 50 day EMA to see if we’ll get another crossover or if the 20 day will fall/continue to hover below that 50 day which as well will be bearish if that continues.
Threat still looms
We are still close enough to be dragged down into that zone again as the market contemplates how the Fed will approach it’s inflation tactic looking to see on whether it will take an aggressive or softer approach . An aggressive approach would be a few 50 bp rate hikes which wouldn’t be easy of course but would allow the market to recover faster and that is what investors are looking to see in the coming weeks.
To note
If we enter back into that support horizontal zone that is highlighted then we definitely will see strong selling pressure kick in again and we move below we’ll see a drop if not a dramatic drop below $31,000. What we are looking to see is whether or not the market can keep itself held above that support during this likely to follow volatile month or if it’ll give in and fall like gravel.
Thank you guys for tuning in and again leave a like and follow, I’m not perfect just like anybody else but I always give my best and most formulated Ideas I can figure.
~ Rock
