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As I mentioned in my previous analysis (previous analysis is below the post): we get a confirmation after we have seen a 4H or Daily candle close below the major counter . It has happened! The price falls below the strong areas like a warm knife through the butter and firstly it got a 1H candle close below the counter and now we have 4H candle confirmation. The prementioned strong areas and now the price is below of them:
– Both bigger EMA’s 100&200
– Previous around $3,900 which had to act as a
– The counter which had to act as a support.
Luckily I manage to notice this fall pretty early from the 15 min. chart where I made an “ALERT” post and after that, the price smashed those levels.
Currently, the 4H candle made a stop (definitely can’t say that it has found support) at the $3,800 level which is around the previous short-term higher low (HL). There is also the Fibonacci perfect retracement level 62% and the several times tested which was resistance and now it becomes support.
After the Bart move, it is very difficult to say where the price may find a . The current level WOULD be the spot but I don’t like this counter . I try to follow the rule that the trend is my friend and currently it breaks below one of the really important price action criterion.
Why I’m suspicious is the mixed signs. The recent rallies and the higher low close from the FIB level will say that it will found a around the current price levels but as I said before the counter collapse make me worried. So, if there are so much mixed signs and You don’t know what to do then do not trade. I will wait for further price action and maybe I get another confirmation after the Daily candle close. If it also gets a close below the counter then it would be more certain that I would like to search sell setups.
Also, if we start to fall lower than the previous 4H candle low this would be also a confirmation that the price doesn’t get a bounce soon enough. This is also common that after the Bart move the price often moves sideways before it makes a next decisional move, an accumulation phase.
SUMMARY: there are so much mixed signs that I will recommend do not trade at the moment but I would like to point out some important support levels and if You see rejection from them then You would be prepared:
1. Previous higher low (HL) around $3,740
2. The next higher low support bounce from the counter at $3,650
3. The major strong $3,550-$3,600. If the price falls lower than this then we might go to pretty low levels!
About rejection, I try to keep You posted if I see a reversal pattern or some important increase some levels!
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CHEERS!
*This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
Previous Analysis:
Published at Thu, 10 Jan 2019 08:44:55 +0000
