Price looks like it's going to form a double top at a supply, and price looks exhausted. It took a whole two days just to push to form a near equal high. That and there's imbalance just before the previous consolidation area. Price has to come back to balance this area out. Price is within an Up-channel and previous resistance is at a Major Quarter Point of 13000, (found a good book on the quarter point theory, best kept secret). 4HR zone resistance (green). I wouldn't be surprised to see price push down a little and then just wick it's way to the one hour blue zone, hence why i'm tapping out just before that area. RSI is a great too, but the market makers have found ways to mar this great tool, still they can't obscure everything though, still I never leave it on my charts for more than a minute. RSI shows two previous highs before current price, on the chart the first high (green arrow) is clearly lower than the second high (blue arrow); meaning it took the same amount of bullish strength just to form that double top. Usually in a double top or bottom you will want the first leg to be higher than the second, or for both to be equal. Translate that that train of thought to the RSI, and what you have is a second leg that struggled just to be equal with the first leg, that's a bearish indication. Plus, in the RSI if you look at the previous HH, you can see that higher (though lower in the channel) supersedes in BULLISH strength in the RSI. So back to current price, after all that strength price is showing clear signs of exhaustion with those feeble candles and its going to a supply that is also a MQP. What will happen? No one knows for certain, I can be wrong but " Only time will tell, I will continue searching for clues".
For educational purposes only.
For educational purposes only.
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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.