Catch A Wave And You’re Sitting On Top Of The World
Updated
We are riding the wave up to 12k, maybe even higher. As stated in my last few charts we were looking for confirmation by a close above 9200 on the daily chart, which did occur. Then we needed a close above 9500 for further confirmation that the bulls are in charge. That will probably be today.
The chart shows resistance levels by Fibs, and the 50 day MA will also be resistance. There is large resistance at 10k because it was such strong support on the way down. We bounced off support at 10k about 5 times, so there may be a fight there. Break through that and we head to 12k.
What I would really like to see is that 50 day MA angle back up again. Right now it is still slanting down and that is always cause for concern since the 50 is our trend indicator. Doesn’t mean it can’t turn up, but as long as it’s in a downturn, all this rally means is prices are returning to their average mean.
This wave up has a strong indication, via Elliot Wave (not shown), of being a masterful impulse wave up. That means they can way outshoot what we think is normal (12k being normal)
If anything, we have to be more watchful now and not get caught up in the emotions and excitement. If I see any indication of a reversal around 12k, we are going to USD (if advisable) and then wait for a low. This will add to our position for the long haul. This is always tricky, so we may not be able to.
Once that 50 turns though, we have a clear shot to a minimum of
64K before another downturn.
Let’s go surfin now....everybody’s learnin how, come on and safari with me.....
The chart shows resistance levels by Fibs, and the 50 day MA will also be resistance. There is large resistance at 10k because it was such strong support on the way down. We bounced off support at 10k about 5 times, so there may be a fight there. Break through that and we head to 12k.
What I would really like to see is that 50 day MA angle back up again. Right now it is still slanting down and that is always cause for concern since the 50 is our trend indicator. Doesn’t mean it can’t turn up, but as long as it’s in a downturn, all this rally means is prices are returning to their average mean.
This wave up has a strong indication, via Elliot Wave (not shown), of being a masterful impulse wave up. That means they can way outshoot what we think is normal (12k being normal)
If anything, we have to be more watchful now and not get caught up in the emotions and excitement. If I see any indication of a reversal around 12k, we are going to USD (if advisable) and then wait for a low. This will add to our position for the long haul. This is always tricky, so we may not be able to.
Once that 50 turns though, we have a clear shot to a minimum of
64K before another downturn.Let’s go surfin now....everybody’s learnin how, come on and safari with me.....
Note
As I was writing this, we went from 9800 to over 10k. Now we see just how mich resistance we get here.
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