Hello!
First of all, happy new year to You all! Hopefully, You will have a wonderful year!
Let’s jump straight into the current action!
Around the current price are two strong price levels/areas or criteria, from where we have to search for some confirmations or opportunities.
The main starting point has to be the up-trendline or if we watch it from the bigger structure the major counter which is drawn as a black line. This is very strong and we can discover this if we watch the past action. We have a light-red fake out box below the and this started on 31. December, firstly a strong candle through the counter which should be a pretty strong sign but bulls manage to hold this after the breakout and on 1. January they pushed the price back above the up-trendline and again, with the high inside the candle. Those two candles also showing the recent days highest . So, from there we can assume – to break this we need power. Before we haven’t seen any power from sellers then this should act as a pretty strong and if we watch that thin blue line, just below the black which is EMA100, then it should confirm that this support is strong.
The Plan – the plan should be the retest, the touch, then a rejection upwards from those levels and close above the on the 4H chart. This should show us that the bulls are alerted and they don’t want to see that the price falls lower than this counter . If You see 4H candle close below the black then You should be cautious because as I mentioned, to break this line we need power and if sellers showing up some decent then the second attempt to break this may be successful and we could go to the lower levels after that close, yes, we have some decent support levels under the major but You should be careful and You have to search for some confirmations from patterns from lower support levels if You want to be on the market, those levels are between $3,650-$3,720.
The second important criterion is surprisingly the EMA200 (thin red line above the current price). Lately, it has worked amazingly as a strong . The price fights with EMA200 on the $4,000 before the Christmas and after that, it is worked three times as a perfect resistance. Plus, at the moment, this 200EMA is on the pretty strong between the $3,900 and $4k. There we have some historically strong resistances and the round number should act also as a resistance. The safer confirmation should come after the 4H candle close above the mentioned levels above the $4,000. Then the price has broken above the strong levels and it has made a new short-term higher high compared with 29. Dec. high.
If we get a rejection upwards from now or a bit lower (not after we have a candle close below the major black ) then we can not forget the continuation pattern called Falling Wedge. After we got a close again above the counter on January 1. we made also a breakout upwards from the . If we look at this from the perspective then we have a continuation confirmation upwards which will be great if You see a bounce upwards from the (if the price touching it)
SUMMARY:
To get confirmations, we have two scenarios:
1. Wait for the rejection from counter and from EMA100 and the 4H candle has to close above the black .
2. This is a bit FOMO (fear of missing out) and this is for a bit longer holders than 1 or 2 days but buy should be triggered after You have seen a 4H candle close above the $4,000. Maybe there comes some throwback then You can get it from the better prices.
confirmation should come after the 4H candle close below the black . The has to be with high , actually, if it gets a close below the then it IS with high but from there You should be cautious.
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Thank You for your support, I really appreciate it!
CHEERS!
*This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
Published at Thu, 03 Jan 2019 11:01:45 +0000
