Over the course of today we saw the completion of my Option Two Bear Flag , except prices have hit the $8,800 range and instead of dropping dramatically have continued a sidewards trend along this support line.
(adjusted my 3rd wave down as it was much larger than i was anticipating, breaking the flag)
As we have completed the 5 waves inside the flag.. i have been expecting a drop anytime now but have not seen one. Volume is also very low at the moment which is indicating signs of a drop out of this flag, this could lead us into a mid to high 7 k region.
We may have to wait out this sidewards movement and see what happens as price is pressed against the lower support line which could see a breakout downwards.
This resistance line which the flag has peaked at is currently copping major hits.
IT HAS BEEN HIT 3 TIMES AFTER OUR RECENT LOW!
With every hit the resistance line weakens and it may only be a matter of time before this Resistance is broken and we push forward.
My number one bullish indicator will be not only a breach of this support line, but a breach of the good old 9k Region, which has been handing out some hardcore rejections over the last few days and may also hand out another one on this juicy 2018 valentines day.
This will not be confirmation of an uptrend, but will be a first step forward into seeing a bullish escape away from another lower low.
FOR NOW
I will be sleeping and waking up to see how prices reacted after breaching bear flag lines, and seeing if they also breach my newly drawn wedge (light blue dotted in last image) and in what direction that takes place in. While volume is low we may see a dramatic drop, but if it is to pick up we may be able to break the 9k resistance and begin a possible uptrend.
Lets see how we go over night!
Legal Disclaimer: I have no idea what I'm doing and I'm not telling you to follow me or make investments based on this information, this is just my thoughts and ideas and what ill be following. Happy Trading!!