This idea still focuses on the basics of price action and volume action. It is a bit repetitive because I have done similar posts so consider this an update to those posts.
If we zoom into this current peak we see
- The blue and red trend lines show where the trend line went from support to resistance, which is bearish price action
- The black trendlines show divergence on the price action to OBV and OBV EMAs which is bearish volume action.
- The MFIis basically a hybrid RSI with volume action on the Money Flow Index with the 15 period look with bearish divergence
- The 15 MFI just crossed below the 50 which is a bearish if sustained. I currently think this ends when the 15 MFI goes below 30, maybe all the way below 20.
If we zoom into this current peak we see
- strong wicking action at the intersection of the falling black trendline and rising red trendline. That is pretty bearish in my book.
- The OBV slipped the 10 EMA and almost tested the 20 EMA as support. I expect we will shortly see a impulsive move down and the OBV will approach the 100 EMA.
- I further predict that the orange trendline price action is testing as support is going to be tested as resistance in dramatic fashion.
- There is still the potential for a head and shoulders in there.
The 12h volume situation has
- falling volume in an acceding triangle.
- Price action is divergent on the MACD Histogram, which suggest that a sustained MACD-Signal cross will occur.
- RSI is divergent and it set highs outside the Bollinger band. I expect we will be wicking out of the 12h lower limit of the bollinger band. again here shortly.
And I promise every Floridian that you will all be rich... because we're gonna print some more money! Why didn't anybody ever think of this before?
~Nathan Explosion
~Nathan Explosion
