As momentum reverses the trajectory of it is now a possibility that the lows of the bear market are behind us and 2019 may be very similar to the price action seen in 2015.
For now, it looks as though will likely be headed a little higher over the next few days. If it makes it above the center of the displayed here we may even be headed for a 50% retrace of the recent crash from $6000. The , in this case, may serve as an early warning system if the momentum stalls out. If it does I expect to move into a range as described in previous posts.
Look for:
- $3750. Following that move I expect it to retreat to around
- $3700 before the final move to
- $3950.
After multiple failed attempts to close the gap to $3260 has now established a range with strong support around $3450 and strong resistance around $3950. This is very close to the range mentioned in my last post, 50$ higher as a result of the failure to close the gap.
The very strong momentum reversal measured on multiple timeframes indicates that we will not likely pull back much prior to the next move higher. The consolidation has broken to the upside.
It is significant also that the downtrend displayed in previous posts is now likely invalidated.
This move will also likely mean that there will not be a move to lower lows any time in the near future.
I expect to find resistance at $3950, however, if manages to break above the center of the uptrend shown in the chart, it will likely make a break for $4500 and eventually $4800 after lengthy consolidation.
Published at Sat, 16 Feb 2019 12:33:26 +0000
