Hi friends! Welcome to this update analysis on Ripple! Before we dive in, I think it is important to emphasize that my analyses are all conditional. Meaning, I determine what price action must do, in order to support a move in one direction or the another. For instance, I will always posit that for X to occur, A, B, and C, are the conditions that must happen first. If you recall from my most recent posts on Ripple, we discussed some of the conditions that must occur, in order for a trend reversal to materialize.
We can think of this as a mathematical equation defined as X=A+B+C, where (X) represents a bullish trend reversal, (A) represents a breakout from the falling parallel channel, (B) represents a breakout above the 50 EMA in orange, and (C) represents a higher high, above the (Previous High.)
I have formulated the conditional nature of market decision making, so that you can understand just how conditional it really is. Looking at the chart, we can see that one of those conditions has occurred — a breakout above the descending parallel channel. However, in my opinion, this isn't enough to change the overall bearish picture. Given the fact that more resistance lies just above, at the 50 EMA, and then the previous high, this could end up being a failed breakout. Personally, I need to see more evidence, (B) and (C,) to believe that a trend reversal (X) has taken place. Otherwise, the head and shoulders pattern is still fully legitemate.
On the upside, we need to see price action break above the 50 EMA (in orange) and the "previous high," resistance level, as confirmation that a trend reversal has taken place. On the downside, a breakdown back into the falling parallel channel, or below the 200 EMA (in purple) would be a big win for the bears. Please follow, like, comment, and share on social media! This has been your fearless market guide, M.P.C. and I'm out!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
We can think of this as a mathematical equation defined as X=A+B+C, where (X) represents a bullish trend reversal, (A) represents a breakout from the falling parallel channel, (B) represents a breakout above the 50 EMA in orange, and (C) represents a higher high, above the (Previous High.)
I have formulated the conditional nature of market decision making, so that you can understand just how conditional it really is. Looking at the chart, we can see that one of those conditions has occurred — a breakout above the descending parallel channel. However, in my opinion, this isn't enough to change the overall bearish picture. Given the fact that more resistance lies just above, at the 50 EMA, and then the previous high, this could end up being a failed breakout. Personally, I need to see more evidence, (B) and (C,) to believe that a trend reversal (X) has taken place. Otherwise, the head and shoulders pattern is still fully legitemate.
On the upside, we need to see price action break above the 50 EMA (in orange) and the "previous high," resistance level, as confirmation that a trend reversal has taken place. On the downside, a breakdown back into the falling parallel channel, or below the 200 EMA (in purple) would be a big win for the bears. Please follow, like, comment, and share on social media! This has been your fearless market guide, M.P.C. and I'm out!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-