Goodmorning family
Over the last day we have seen price break my noted support line , with a small bounce back inside just as the prediction stated. Before i went to sleep last night however i got on my phone to look for some more trend lines where i found this little bad boy.
If prices were to break this line we were probably going to see some more sideways action into the wedge prior to any more decisive moves, when waking up this morning we saw that it had done exactly that.
Again we are being pushed into the corner of this wedge where eventually price will need to break out of either the top end or the bottom end. Depending on the direction of this breakout we will see where it is most likely price will move.
In the case of a break upwards i believe the Head and Shoulders pattern that we have seen for days now may continue to form . If so we may break the upper trend line and go up to a price around $8933. If this scenario plays out and prices continue to rise above this point, it may confirm that we have seen our low and we only have juicy gains left upwards!
But every-time i see this H&S pattern something looks ridiculously dodgy and thats the volume. Currently the volume is so low that i cannot see it breaking above the upper trend line and completing the H&S pattern. Also volume should be confirming the pattern by repeating the same shape, where has our right shoulder gone in the volume??
So until i see a clear break of that upper support line and an upwards change in volume i am remaining bearish on the current situation and believe that another low may be seen . Without volume picking up a break down may be inevitable which may provide us all with some more perfect buying opportunities!
Legal Disclaimer: I have no idea what Im doing and Im 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!!