Over the last couple days I have been warning about an ideal setup for a bull trap and today it looks like that was the case. Thin order books and lower liquidity make it much easier for a whale(s) to manipulate the price. That person(s)could cause the price to breakout of the 26 day downtrend (red dotted) and push the price above $7,600 without needing as much capital as he would on weekdays.
Doing that confirmed the inverse head and shoulders and likely triggered a buy signal for many short term traders. I was watching closely yesterday afternoon and Tweeted a 15 minute chart after the price broke down the trend support. I advised to watch out for $7,640 to breakdown as an indication that this recent bounce is exhausted.
Referring back to the 4 hour chart: I am expecting a small bounce at $7,385 where there will be support from the longer term channel (green dotted), the bottom end of the triangle (purple solid) and the bottom end of the bollinger band. If that bounce fails to get past $7,600 and creates a lower high then it will be time to sell the rest of my spot and be on be on the lookout for a short sale entry.
The ideal set up for us short term bears would be the formation of a bear flag to confirm under $7,600 resistance. If that occurs then I will be very likely to open my short at that price instead of waiting for a new local low below $7,024.
Until next time trade happily and remember that likes/comments/follows are greatly appreciated!
Doing that confirmed the inverse head and shoulders and likely triggered a buy signal for many short term traders. I was watching closely yesterday afternoon and Tweeted a 15 minute chart after the price broke down the trend support. I advised to watch out for $7,640 to breakdown as an indication that this recent bounce is exhausted.
Referring back to the 4 hour chart: I am expecting a small bounce at $7,385 where there will be support from the longer term channel (green dotted), the bottom end of the triangle (purple solid) and the bottom end of the bollinger band. If that bounce fails to get past $7,600 and creates a lower high then it will be time to sell the rest of my spot and be on be on the lookout for a short sale entry.
The ideal set up for us short term bears would be the formation of a bear flag to confirm under $7,600 resistance. If that occurs then I will be very likely to open my short at that price instead of waiting for a new local low below $7,024.
Until next time trade happily and remember that likes/comments/follows are greatly appreciated!
emasar Indicator is available for purchase at alphanalysis.io/product/emasar/