Strong momentum into overhead resistance
Updated
Note: 100DMA is not really important, just included it because rejected on 14 AUG, so some traders might give it weight, which adds to short positions.
What's relevant:
Confluence of trendlines that present a perfect short position if it wasn't for the short-term bullish momentum.
However, it is clear to me this momentum came from a short squeeze out of a descending wedge backed by bullish hidden divergence on the RSI
This provides a great opportunity from a whale's perspective to fabricate a pump and dump. I think this is what's happening.
Structurally, if you consider the early June to late August to be a bear flag, this P.A is retesting the lower line of the flag which is a classic chart pattern.
Despite the short-term bullish momentum, there's real possibility whales will dump, triggering another large sell-off late September.
This will be invalidated by breaking 23k.
Bullish scenario:
If price breaks into flag and closes above near 18 Sep, this resistance could turn into support.
What's relevant:
Confluence of trendlines that present a perfect short position if it wasn't for the short-term bullish momentum.
However, it is clear to me this momentum came from a short squeeze out of a descending wedge backed by bullish hidden divergence on the RSI
This provides a great opportunity from a whale's perspective to fabricate a pump and dump. I think this is what's happening.
Structurally, if you consider the early June to late August to be a bear flag, this P.A is retesting the lower line of the flag which is a classic chart pattern.
Despite the short-term bullish momentum, there's real possibility whales will dump, triggering another large sell-off late September.
This will be invalidated by breaking 23k.
Bullish scenario:
If price breaks into flag and closes above near 18 Sep, this resistance could turn into support.
Note
I'm thinking November-December DXY comes down
Disclaimer
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.