Ranging Between $10,000 and $11,000 To Determine Trend
Updated
Afternoon traders!
As I mentioned in my last update, I expected a continuation to the $10,000 zone to tape the liquidity before any other upside movements.
We got the bull trap around $11,000 that I had also mentioned before seeing the $1,000 move to the downside.
We are currently still in this tight consolidation range before determining our next trend.
There is a mixture of bearish and bullish sentiment as well as technical indications.
On a high time frame, it looks like we've hit a key level of the Mayer Multiple (the ratio of distance that price makes away from the 200 day moving average.)
This usually sees a 40% correction to get back to a neutral zone before retesting the previous highs.
We are seeing some nice consolidation and rounding out patterns on lower time frames like the 15 minute to 30 minute along our strong 61.8% demand zone.
Usually a fall to the 61.8% zone takes us back to the 38.2% zone, which would mean our take profit zone would be around $11,400 if we do get the bounce outside of the channel.
If we do break down from the current support trendline, it is still possible to fall all the way down to the $7900-$8300 zone.
This means to be cautious and ladder in your entries to bring your cost average down rather than all in on one key support level.
As I mentioned in my last update, I expected a continuation to the $10,000 zone to tape the liquidity before any other upside movements.
We got the bull trap around $11,000 that I had also mentioned before seeing the $1,000 move to the downside.
We are currently still in this tight consolidation range before determining our next trend.
There is a mixture of bearish and bullish sentiment as well as technical indications.
On a high time frame, it looks like we've hit a key level of the Mayer Multiple (the ratio of distance that price makes away from the 200 day moving average.)
This usually sees a 40% correction to get back to a neutral zone before retesting the previous highs.
We are seeing some nice consolidation and rounding out patterns on lower time frames like the 15 minute to 30 minute along our strong 61.8% demand zone.
Usually a fall to the 61.8% zone takes us back to the 38.2% zone, which would mean our take profit zone would be around $11,400 if we do get the bounce outside of the channel.
If we do break down from the current support trendline, it is still possible to fall all the way down to the $7900-$8300 zone.
This means to be cautious and ladder in your entries to bring your cost average down rather than all in on one key support level.
Note
Low time frame, we never broke the downtrend channel.We also hit a bearish supply block and are coming up on testing a bullish order block soon.
This will be a key retest here.
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