The way I see it, this is either a or a . The difference is that if this is a , we might be approaching the resistance to around $3740 which coincides with a 38.2 fib retracement to the 29 November high. There is also on the 1H so expecting a move to $3740. We either then have a strong break out above the with to our $4025 resistance (61.8 fib retracement to our 29 November high), or we fall back to the support at around $3200 for another bounce to the resistance at around $3500.
On the other hand, if this is a playing out, we still might break above resistance when we get to $3740, however if we drop from there, we’ll move towards our support at around $2800 before bouncing back towards resistance.
If we do have a breakout, I’m expecting a move to our $4950 resistance (138.2 fib ext) then to either our daily SMA50 which coincides with a 161.8 fib extension at around $5236 and if we break above the SMA100, then we can expect to test SMA100 at around $5950.
We still need to test these moving averages at some point and there is on the 1D. The only problem is and the fact that we have hidden divergence on the 4H so we might have a drop from our $3740 resistance. Then we’ll see if our support lies at $3220 or $2800.
Good luck and happy trading!
Published at Tue, 11 Dec 2018 04:32:39 +0000