Last post on the 6th –
The market has moved along the mid-line of the channel and appears to be taking the faster of my two predictions to the downside. A breakout above $7758 followed by $8379 will change my mind on the bearish bias.
Big picture –
A lot of the hot air has come out of the market the past six months. With the MFI & Stochastics well below their mid-ranges, there doesn’t seem to be *much* more price reduction to be had. Not worth betting on just yet though.
Less big picture (main chart) -
Still well within the down channel and under fast & slow moving averages. The MFI never broke out >60 and is turning down and the stochastic cross is confirming that move. The market is already near some structure at the $7000 range and there isn’t much below there until the mid $5k’s. Looks like Christmas is coming early if the market breaks that range and heads <$4k.
What I’m looking for to go short –
A run up to the top of the channel, a few 4h wicks showing resistance, enter with a stop just above. TP at mid-channel, move stop to breakeven, see if price heads to the bottom.
To go long –
Price at the bottom of the channel, close above the 20 EMA (orange), MFI & stochastic confirmation with breakout >60. TP at mid-channel, move stop to breakeven, see if price heads to the top.
Questions, comments or concerns on the plan are welcomed below. Let me know how you’re playing it.
Big picture –
Less big picture (main chart) -
Still well within the down channel and under fast & slow moving averages. The MFI never broke out >60 and is turning down and the stochastic cross is confirming that move. The market is already near some structure at the $7000 range and there isn’t much below there until the mid $5k’s. Looks like Christmas is coming early if the market breaks that range and heads <$4k.
What I’m looking for to go short –
A run up to the top of the channel, a few 4h wicks showing resistance, enter with a stop just above. TP at mid-channel, move stop to breakeven, see if price heads to the bottom.
To go long –
Price at the bottom of the channel, close above the 20 EMA (orange), MFI & stochastic confirmation with breakout >60. TP at mid-channel, move stop to breakeven, see if price heads to the top.
Questions, comments or concerns on the plan are welcomed below. Let me know how you’re playing it.