As I posted on my previous idea, we knew that the resistance of the rising wedge's top trendline was too strong for us not to eventually break down from the wedge, and just now in the last 4 hr candle we have confirmed that breakdown. I said in the last idea that ideally the 26th would be the most opportune time for the rising wedge to fall to and bounce up off of the eve trendline because the projected breakdown target of the rising wedge would hit its target and run out of steam right at the eve trendline which sets it up perfectly for a big bounce/rebound, one powerful enough to then break us back upwards from the rising wedge and take us up towards the neckline of the double bottom(dotted white horizontal line)....so far it appears that we have currently found some support at the 23.60% fib line at around $8689, and my guess is we will start forming a bear flag here. This is also the eprfect place to form a bearflag because the projected breakdown from a bear flag here matches the exact projected breakdown I have for the rising wedge...which would also run out of bear steam right at the super strong support of the eve trendline. If this happens the way I anticipate, then I expect a huge bounce at the eve line that will rocket us back up through the rising wedge and over 10,000. To have this happen now instead of closer to the rising wedge's apex is essential for us to preserve this double bottom pattern we are in. So for now I'm flipping my stance to short but only until it reaches around 8136 where I anticipate the bounce...and as I said in my idea yesterday I think it will reach that price point sometime on the 26th..so we will either see the bounce happen late evening of the 26th or sometime on the 27th. Of course this is all just what I feel to be the most probable outcome...its still very possible for us to form a head and shoulder pattern here and plummet further...I think probability favors the idea I'm siding with but I will as always be prepared for either outcome. You choose whatever path suits you best, for this is not financial advice. Thanks for reading!
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.