Good morning, traders. I know everyone wants to be bearish because it's easy, but that's also why so many retail traders lose money -- they want to take the easiest route. While I'm not stating that the lowest point is definitively in, I am going to say that current price action on the H4 and higher charts is looking more bullish than bearish at the moment. We have looked at many possible patterns printing over the past few weeks, but I only want to concentrate on two right now that we have discussed -- the light blue large descending wedge printing since the ATH and the orange descending wedge printing since December 24, 2018.
The blue wedge has confirmed with two alternating touches to the top and bottom suggesting, at the very least, a target of the upper blue line. A break and close above that resistance should suggest that either 1) price is headed up into the next bull run or 2) a TR has been established and any movement below the 2018 low will be very short-lived and not very deep. In either scenario, there is a lot of money to be made. However, shorter-term we are watching the orange wedge. The significance of this orange wedge is that the lows are showing possible seller fatigue. We know this because they are printing lower at a much shallower degree than the highs. This is why descending wedges tend to be reversals. The target on a bullish break of this orange wedge is the green box on the H4 chart, which is based on the height of the wedge. However, I continue to hold that any break toward that target area should ultimately result in price targeting the EQs of the two upper supply zones noted at around $4500 and $5420. Also, of importance to note is the descending dashed white line which gives us mid-term resistance beginning at the $6400 level right before the drop. Volume has continued to drop significantly suggesting that a large move in one direction or the other is coming very soon. Earlier this week I stated that it is likely to be this weekend and it still looks that way, so traders should remain cautious. We can also see the various bull divs that have printed the past couple of months on the H4 and D1 charts. These would give credence to a move up toward $5000. However, as I continue to say, until it actually happens it is only a possibility. Because of price's current location just below the pivot and just underneath orange and dashed white resistance, and corresponding drop in volume, I would expect any possible move up to be explosive, catching traders off guard as they expect price to drop. As always, if price drops rather than pops, I am looking for the lower demand zone around S1 to provide initial support.
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
The blue wedge has confirmed with two alternating touches to the top and bottom suggesting, at the very least, a target of the upper blue line. A break and close above that resistance should suggest that either 1) price is headed up into the next bull run or 2) a TR has been established and any movement below the 2018 low will be very short-lived and not very deep. In either scenario, there is a lot of money to be made. However, shorter-term we are watching the orange wedge. The significance of this orange wedge is that the lows are showing possible seller fatigue. We know this because they are printing lower at a much shallower degree than the highs. This is why descending wedges tend to be reversals. The target on a bullish break of this orange wedge is the green box on the H4 chart, which is based on the height of the wedge. However, I continue to hold that any break toward that target area should ultimately result in price targeting the EQs of the two upper supply zones noted at around $4500 and $5420. Also, of importance to note is the descending dashed white line which gives us mid-term resistance beginning at the $6400 level right before the drop. Volume has continued to drop significantly suggesting that a large move in one direction or the other is coming very soon. Earlier this week I stated that it is likely to be this weekend and it still looks that way, so traders should remain cautious. We can also see the various bull divs that have printed the past couple of months on the H4 and D1 charts. These would give credence to a move up toward $5000. However, as I continue to say, until it actually happens it is only a possibility. Because of price's current location just below the pivot and just underneath orange and dashed white resistance, and corresponding drop in volume, I would expect any possible move up to be explosive, catching traders off guard as they expect price to drop. As always, if price drops rather than pops, I am looking for the lower demand zone around S1 to provide initial support.
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
