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Remember the last post where I said: when the price is too long on the strong area then it decreases the trade success rate. That what exactly happened on Sunday, the price was too long on the strong and it falls lower from it. I said also “now or never”, two-three hours and then it was never 🙂
The break below the strong-support level breaks also a good market structure which was short-term higher highs and higher lows. We got a new lower low and we are below the strong area, these criteria lead us into the sell setup, but how deep?
A little bit deeper:
As You see on the major image there area three strong break candles on the light-blue area, the first one was on 6. December, the second one was 18. December and the last one was yesterday. So, that’s means, multiple attempts but only three break attempts have been successful. Currently, we are below the strong price level and it starts to work as resistance (Today, the price retested this after the breakout from Sunday). If we look at this from the current price action perspective then some price patterns and chart patterns show us that the next leg downwards should come somewhere around $3,350.
The stop/bounce criteria on $3,350:
* We have retested and got a rejection from the strong resistance, which should lead the price into the lower levels – to the $3,350
1. The big bottom ( is copy/paste from upper because often price moves on the channel and that’s why I think we might get a small bounce from there.
2. equal legs around the mentioned area
3. Decent on the $3,350
So, these criteria make a crossing area which is pretty strong. The previous 4H candle got a rejection from weekend low wicks and the candle looks like a pattern Shooting Star. Altcoins has started also a throwback after some tiny morning climbs.
At some point in time, we have to make some pullback to retest some higher levels but those higher levels become after every drop lower than previously. (hopefully, You understand what I mean – some point we wait for a retest to counter , it passed because the price has dropped and now after the drop to the $3,350 we wait for a bounce to the $3,550)
Currently, the plan is to sell from here ($3,530) and sell into the mentioned bounce area $3,350. From there we could see a small stop and If we get a good rejection candle then there could be a possible buy opportunity!
I start to make updates and I try to keep You posted!
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*This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
Previous Analysis:
Published at Mon, 14 Jan 2019 12:17:11 +0000
