Strong evidence for reversal; imminent dump; medium term: bull
For the past month price action has been drawing a Head and Shoulders Bottom pattern, with a bull Double Bottom right shoulder confirming strong support around $430.
Far from losing steam, this bullish indicators have lead to a price breaking without flinching the December long term downtrend and flirting for a week now with the H&S neckline and Fib .5 retracement (based the last major bull run, in April).
As of today, this neckline and Fib resistance has been broken as price has, over 24h, risen by a substantial 10% to reach $490.
In a healing market looking for closure, the word "Reversal" has been heard increasingly often these past months, to the point of potentially becoming a self-fulfilling prophecy, only needing a slight push to take off. In the absence of either good or bad news, this pump, even if artificially initiated, might very well act as catalyst for self-restrained bulls that have been looking for reasons to cut their ropes.
Following this pump, I expect to see a dump, but price to remain above the $450 old resistance, now become strong support. From there I hope to see the market gain bull momentum and volume to tackle the strong $500 resistance.
I will wait for the dump before opening a long, close at $500, and see from there.
Far from losing steam, this bullish indicators have lead to a price breaking without flinching the December long term downtrend and flirting for a week now with the H&S neckline and Fib .5 retracement (based the last major bull run, in April).
As of today, this neckline and Fib resistance has been broken as price has, over 24h, risen by a substantial 10% to reach $490.
In a healing market looking for closure, the word "Reversal" has been heard increasingly often these past months, to the point of potentially becoming a self-fulfilling prophecy, only needing a slight push to take off. In the absence of either good or bad news, this pump, even if artificially initiated, might very well act as catalyst for self-restrained bulls that have been looking for reasons to cut their ropes.
Following this pump, I expect to see a dump, but price to remain above the $450 old resistance, now become strong support. From there I hope to see the market gain bull momentum and volume to tackle the strong $500 resistance.
I will wait for the dump before opening a long, close at $500, and see from there.
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