The Retest
Updated
As we hit 2 points of large resistance, we also zoom out and view a huge cluster of 50 and 200 exponential and moving averages.
We summise that breaking these 2 resistances would be a huge trap only to get rejected at converging MA resistance in the region of 25400
Max pain scenario would be to enter the 25k territory and retest the triangle marked in white as an inverse head and shoulders or back into the triangle for a triple bottom.
Weekly close above 26200 would be bullish and the Moving Average cluster retest would be crucial to create bull market momentum. The probability is a rejection from this area however.
We must remain open minded to each scenario
The bottom could be in and could be created at these stopping points:
21 weekly EMA
Inverse Head and Shoulders
3 Drives to a low with triple bullish divergence
Extreme capitulation into the sub 9k region
We summise that breaking these 2 resistances would be a huge trap only to get rejected at converging MA resistance in the region of 25400
Max pain scenario would be to enter the 25k territory and retest the triangle marked in white as an inverse head and shoulders or back into the triangle for a triple bottom.
Weekly close above 26200 would be bullish and the Moving Average cluster retest would be crucial to create bull market momentum. The probability is a rejection from this area however.
We must remain open minded to each scenario
The bottom could be in and could be created at these stopping points:
21 weekly EMA
Inverse Head and Shoulders
3 Drives to a low with triple bullish divergence
Extreme capitulation into the sub 9k region
Note
filthy double top looking shenanigans
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