After a hammer candle of K3, price correction here is still weak.
The price with an increased volume but failed to close upon 26800,
it seems to be limited in a chaos flag box.
There is not enough evidence to buy in.
Nearest resistance is at about 0.382Fib line.
Today's candle showed that the support and demand is temporary in balance.
This will ease the temporary oversell status.
After the rest, the supply pressure will most likely restore it's strength.
If there is more evidence come up, I will try to short it.
Note
The present candle most likely couldn't close below 26000,If that is the fact, price will go on to test the resistance of 27000.
If the price close below 25820, the bear market will recover.
Note
In the chaos bear flag box, price seems to be limited to 0.5-0.618fib area.
If the following day's candle could close upon 26295 or below 25810,
the price will go to test the upper limit or lower limit line of the box.
Note
After the hammer candle K3, K5 is the first test of K3, and K6 is the second test of the K3.
They both have lower volume. K6 closed upon 0.5fib line.
This increased the possibility to price up to test the upper limit of the box.
If we want to buy here, stop lose set at 25800, price target is 26750.
Trade closed manually
Unfortunately, I misjudged the rebound momentum and price target.
The supposed bear flag box is also inaccurate.
In the box, buying pressure is actually stronger.
And price up close to the theoretical target line.
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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.