A short rally and everywhere I look its talking of bullish confirmations.
On the weekly we had a pullback to the .618 fib and although this pushed past a long term trendline, it is still just a lower high and a possible wave 4 of a downwards drive. I am now expecting a wave 5 before this correction is over.
I now have a 1.618 measured move target and a possible ABCD pattern that would bring us down to meet the long term yellow trend line I have had on my charts all year. If the price gets down there around $4200 I will be looking for some bargains.
This move would likely see the weekly RSI in the 30's which I would also see as a good indication the market has corrected sufficiently.
Another scenario is we will pull back only as far as about $6800 again to make a higher low and the right shoulder of a inverse h&s on the weekly. If this happens I will feel a lot more bullish.
On the weekly we had a pullback to the .618 fib and although this pushed past a long term trendline, it is still just a lower high and a possible wave 4 of a downwards drive. I am now expecting a wave 5 before this correction is over.
I now have a 1.618 measured move target and a possible ABCD pattern that would bring us down to meet the long term yellow trend line I have had on my charts all year. If the price gets down there around $4200 I will be looking for some bargains.
This move would likely see the weekly RSI in the 30's which I would also see as a good indication the market has corrected sufficiently.
Another scenario is we will pull back only as far as about $6800 again to make a higher low and the right shoulder of a inverse h&s on the weekly. If this happens I will feel a lot more bullish.
Note
Well actually we have had a slightly higher high on the weekly which has potentially formed the right shoulder for an inverse h&s. A strong push thru the neckline at around $7500 may be all that stands between us and the end of the bear market.
Failing that my downside target of $4200 is still valid.
Let’s see how we go
Note
*Make that a push thru $7700Note
Took a while but it got there in the end ;)
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.