After chasing ahead of the potential right shoulder downtrend, we have seen price perfectly touch the .382 fib level, before bouncing back up.
We now find ourselves approaching the previous support, turned resistance. The volume doesn’t look high enough to force this through, and I think there’s a good chance we retrace back to test the 9.6k level again so is a good short opportunity if we see price get rejected here at 10.2k. Will there be enough downward pressure to take us down below the .382 level though? Personally, I hope so as I think we need a decent retracement to allow us to take a good run back up and past 11.9k!
I agree with you, but don't you think it can go to 10.5k before bouncing back. And if breakes support up, what is your buying point? Thanks!
tgw88
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@AlxSt7, yeah i think there's a chance. It's currently quite a wide range with previous support at the 10.2-10.3k levels, and the previous .236 fib level just over 10.4k. The volume is pretty low though so struggle to see it getting through. We are now hitting the previous lows from Wednesday 8/9pm UTC.
I'm not really looking to buy anywhere from here at the moment, would only be looking to short if we see resistance and a retrace. I would start paying more attention if we were up towards 10.9k but would need to see strong volume to get through 11.2k and serious volume to get through 11.9k!
tgw88
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@AlxSt7, interestingly the volume did pick up to push it towards the top of the resistance range. It perfectly hits the edge of our range, before the volume significantly dropped off (check the 15m to see!) before retracing down quite aggressively over the past 30m