This is my first post, I have been teaching myself technical analysis for 6 months now. This is not financial advice, just my observation of a pattern.
Bulls recovered nicely after the sell-off earlier in the week, however there is still much uncertainty in the market from the magnitude and duration of the event.
Keep in mind that a head and shoulders pattern is a possibility, with the characteristic pattern forming on the 4hr and a declining volume associated with the pattern. If we break the neckline of 11058, I would expect a move back down to test the lows set earlier in the week at $9,017. Personally, this seems more likely as we are losing volume, about to start a slight bear MACD cross on the 1 hr time frame, and are setup for the Stochastic RSI to undergo a bearish cross as well. This could provide an excellent double-bottom setup on the 4 hr time frame from which bulls can bounce with more strength.
If we instead null the head and shoulders pattern, I would expect a relatively strong move back up towards the $14,0000 range with higher highs and lows being set on the way.
Bulls recovered nicely after the sell-off earlier in the week, however there is still much uncertainty in the market from the magnitude and duration of the event.
Keep in mind that a head and shoulders pattern is a possibility, with the characteristic pattern forming on the 4hr and a declining volume associated with the pattern. If we break the neckline of 11058, I would expect a move back down to test the lows set earlier in the week at $9,017. Personally, this seems more likely as we are losing volume, about to start a slight bear MACD cross on the 1 hr time frame, and are setup for the Stochastic RSI to undergo a bearish cross as well. This could provide an excellent double-bottom setup on the 4 hr time frame from which bulls can bounce with more strength.
If we instead null the head and shoulders pattern, I would expect a relatively strong move back up towards the $14,0000 range with higher highs and lows being set on the way.
Nota
1:40 pm looking to test the neckline soon
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.