Yesterday I reaffirmed my short term bearish outlook, but also mentioned that we could get a dead cat bounce over the next two weeks. In the post where I outlined my reasons for turning bearish I also outlined 5 major areas of resistance that I will be watching out for.
The price pulled back yesterday before reaching the first area of resistance that I outlined ($7,675) and I was watching closely to see how much steem was behind that move. As it turned out there was not enough to create a new low and trigger my short sale entry.
Instead we created a higher low and have also established a slightly higher high. We are fast approaching the downtrend (red dotted) that has held strong since the 5th of May. This will be the third touch of the trend line and I expect bears to be waiting in numbers.
I think this will be the single most important level of resistance. If the down trend can be broken then there shouldn’t be much problem getting back to $8,200. On the other hand if bears overwhelm the bulls at $7,600 then I expect a new local low to come in very quickly.
I still have an order set at $7,024 to open a short sale as soon as/if a new low is created.
Happy and trading and remember that likes/comments/follows are free!
The price pulled back yesterday before reaching the first area of resistance that I outlined ($7,675) and I was watching closely to see how much steem was behind that move. As it turned out there was not enough to create a new low and trigger my short sale entry.
Instead we created a higher low and have also established a slightly higher high. We are fast approaching the downtrend (red dotted) that has held strong since the 5th of May. This will be the third touch of the trend line and I expect bears to be waiting in numbers.
I think this will be the single most important level of resistance. If the down trend can be broken then there shouldn’t be much problem getting back to $8,200. On the other hand if bears overwhelm the bulls at $7,600 then I expect a new local low to come in very quickly.
I still have an order set at $7,024 to open a short sale as soon as/if a new low is created.
Happy and trading and remember that likes/comments/follows are free!
emasar Indicator is available for purchase at alphanalysis.io/product/emasar/