Total Market - A tale of 2 parabolas and 2 triangles
Updated
The similarity of the fractals between 2017 and early 2018 triangle consolidation is obvious, 2019 saw a parabolic rise and it topped out at the end of June, since then we are in a descending triangle of consolidation. A repeat will cause the market cap drop by 50% from here
RSI on the weekly is on the verge of breaking below 50 (red arrows) after a double top, this zone is bearish and we are almost there.
The 21 WMA is at 255B and we are now below it, this is another bearish sign
Here is another view on a daily chart
Market cap was in a ascending channel (green) and then broke below it and stuck within the red downward channel, a few days back it appeared to breakout but the lower channel bottom (green) acted as major resistance (red arrow) and rejected the price and we are now back in the red channel
Daily RSI attempted to break above 50 and failed twice creating a double top
From EW perspective, the parabolic rise can be considered as 5 waves done and we are now in the C wave of an ABC correction
Target1 - Green box (we already hit this once)
Target2 - Blue box /Median line of red channel
Target3 - Bottom of red channel
RSI on the weekly is on the verge of breaking below 50 (red arrows) after a double top, this zone is bearish and we are almost there.
The 21 WMA is at 255B and we are now below it, this is another bearish sign
Here is another view on a daily chart
Market cap was in a ascending channel (green) and then broke below it and stuck within the red downward channel, a few days back it appeared to breakout but the lower channel bottom (green) acted as major resistance (red arrow) and rejected the price and we are now back in the red channel
Daily RSI attempted to break above 50 and failed twice creating a double top
From EW perspective, the parabolic rise can be considered as 5 waves done and we are now in the C wave of an ABC correction
Target1 - Green box (we already hit this once)
Target2 - Blue box /Median line of red channel
Target3 - Bottom of red channel
Note
Breakdown with perfect overlapZoomed out
Trade closed: target reached
Target reached after 6 months!
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