Filling the gap or another sell off?
On Tuesday, we saw a massive sell off after CPI data came back very hot. The selling started around $18000 and continued to below $17600 but bought back up into $17850 within a day. Clearly the sells have weak hands and buyers are in business or at least that is what they want us to assume. According to the fibs, the market sold off more than 50% from the high which is about 3% with a 1% sell off occurring on Tuesday in line with the 0.1% increase in inflation month over month.
My plan is to watch the action overnight on Thursday and see if we break above $17900 before 9:30 am. If we break above $17900, I would like to see price climb above $18000 to fill the initial sell off gap and continue until we reach the all time high. If we do not, I want to see a pull back below $17800 and see if we break this area of demand to go back down further or see buyers come strong and make price go back to $17900 to possibly test $18000.
My plan is to watch the action overnight on Thursday and see if we break above $17900 before 9:30 am. If we break above $17900, I would like to see price climb above $18000 to fill the initial sell off gap and continue until we reach the all time high. If we do not, I want to see a pull back below $17800 and see if we break this area of demand to go back down further or see buyers come strong and make price go back to $17900 to possibly test $18000.