Good morning, traders. Yesterday I warned about initiating a position at the EQ of the local TR as it was unclear whether price was headed up or down. Price ended up heading down as we can see. I mentioned that, if price dropped, I would be looking for it to bounce out of the blue demand zone or, if strong volume came in with the supply, then I would be watching for a bounce at the S1 pivot. So far, price is in the blue demand zone, so we should be watching to see if it bounces from this area since volume, so far, hasn't been significant at all.
The previous 4H candle again shows you why dojis are merely pauses and not necessarily reversals. Dojis during a trend require the next candle to confirm continuation or reversal. Traders should be watching this candle for a large lower wick which would be bullish and would also print tweezer bottoms suggesting a reversal incoming. Currently, price has almost touched the 61.8% retracement of the most recent bounce. A touch of the S1 pivot would have price just beyond the 78.6% retracement. I have outlined a possible descending red wedge, however until price actually bounces off the wedge support and targets wedge resistance, it could still fall below it. RSI has almost reached oversold again but Stoch RSI is oversold and nearing bottoming out. The 4H volume has not been significant though it did rise through yesterday morning. Today we see the volume spikes near that same level but the candle spreads are much smaller which tells us demand is showing up at these lower levels. The question is, will there be enough to reverse price direction from this point?
The 1H RSI is printing bullish divergence at this time but we need to see price continuing higher to confirm it. The RSI resistance has been noted on the different TFs and should be watched. 1H volume has increased noticeably over the previous period but the candle spread remains small, again telling us that demand is attempting to overcome supply. Stoch RSI is nearing a possible bearish cross. The M30 RSI is printed bullish divergence and is currently attempting to confirm it as it nears a break of its resistance. While Stoch RSI is much higher on this shorter TF, it is curling up for a possible bullish cross.
My targets remain the green and orange boxes for now. With a clear ABC completion on the daily, we must now follow price action to see if that is the end of the correction or if we have a combo which will ultimately see price heading toward the mid-$8000s. However, we should generally expect price to target that ~$12000 level before doing so. The 3D chart shows multiple hidden bullish divergence following each other and RSI is retesting resistance as support. Stoch RSI on this large TF bounced in overbought and recently crossed bullishly. Price remains supported by the pivot.
I will be streaming on YouTube and Twitch at 10 a.m. CST/3 p.m. UTC and would love for you to join me if you have the chance. You can search TexasWestCapital on both platforms.
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Be sure to hit the "thumbs up!"
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
You can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own. When you do, be sure to explore the other TFs to see what I'm watching on those TFs.
The previous 4H candle again shows you why dojis are merely pauses and not necessarily reversals. Dojis during a trend require the next candle to confirm continuation or reversal. Traders should be watching this candle for a large lower wick which would be bullish and would also print tweezer bottoms suggesting a reversal incoming. Currently, price has almost touched the 61.8% retracement of the most recent bounce. A touch of the S1 pivot would have price just beyond the 78.6% retracement. I have outlined a possible descending red wedge, however until price actually bounces off the wedge support and targets wedge resistance, it could still fall below it. RSI has almost reached oversold again but Stoch RSI is oversold and nearing bottoming out. The 4H volume has not been significant though it did rise through yesterday morning. Today we see the volume spikes near that same level but the candle spreads are much smaller which tells us demand is showing up at these lower levels. The question is, will there be enough to reverse price direction from this point?
The 1H RSI is printing bullish divergence at this time but we need to see price continuing higher to confirm it. The RSI resistance has been noted on the different TFs and should be watched. 1H volume has increased noticeably over the previous period but the candle spread remains small, again telling us that demand is attempting to overcome supply. Stoch RSI is nearing a possible bearish cross. The M30 RSI is printed bullish divergence and is currently attempting to confirm it as it nears a break of its resistance. While Stoch RSI is much higher on this shorter TF, it is curling up for a possible bullish cross.
My targets remain the green and orange boxes for now. With a clear ABC completion on the daily, we must now follow price action to see if that is the end of the correction or if we have a combo which will ultimately see price heading toward the mid-$8000s. However, we should generally expect price to target that ~$12000 level before doing so. The 3D chart shows multiple hidden bullish divergence following each other and RSI is retesting resistance as support. Stoch RSI on this large TF bounced in overbought and recently crossed bullishly. Price remains supported by the pivot.
I will be streaming on YouTube and Twitch at 10 a.m. CST/3 p.m. UTC and would love for you to join me if you have the chance. You can search TexasWestCapital on both platforms.
_____________________________________________________________
Be sure to hit the "thumbs up!"
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
You can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own. When you do, be sure to explore the other TFs to see what I'm watching on those TFs.
