Price continues to climb as it approaches a strong set of resistances at $8.3k. Still without any real pullback from the strong move earlier in the week, it would not be much of a surprise to see price fall back into support today.
Price Action Levels
Resistances - Price is up against an important zone of resistance at the moment that provided support on the weekly several times and now will act as resistance on the way up. This also lines up with the .618 fib level at $8.2-8.3k.
A break and hold above with multiple daily candles, especially the weekly, would be VERY bullish. Above that mark we would set our sights on $8.6k.
Supports - If price were to fall from here we can expect $7.8k to provide a nice bounce and zone of support. If $7.8k doesn't hold we will look for $7.5k to give us a bit of support.
Moving Averages - The daily moving averages loom above price at the moment starting around $8.5k. A breach and hold above these would be a great sign of strength.
Ichimoku Cloud - Looking at the daily cloud. There is a strong case for a move up towards $9k where the kijun is. That said, price has been unable to break above the kijun this entire downtrend, so if we do manage to break above it, that would be a very strong bullish signal. If we break into the cloud we would then set our targets to the opposite, flat, edge of the cloud based on ichimoku analysis
Oscillators - Looking at the daily oscillators, we see them approaching very high, "overbought" zones, relative to the action throughout the downtrend. Holding up at these levels would again be a sign of bullishness and reversal in trends.
The 4H RSI also is showing a bearish divergence, hinting at a potential pullback in the near term.
Looking at higher time frame indicators we see that price is due for a pullback IF price is going to continue trending downwards.
These next few days will be telling if that strong move earlier in the week was enough to give price the strength to begin reversing the trend.
The first step would be closing the weekly candle today above $8.3k. After that a break and hold above $9k would be very compelling for the start of a new bull trend.
There is a good amount of resistance and bearish signals at the moment though.
SORRY I CANT POST MY CHARTS.
Twitter & Telegram Handle: @BoomerCapital
Real People, Real Business, Real Signals