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May 14, 2018, 09:59:28 PM |
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Price attempting to climb and stabilize above the $8.7k zone of resistance at the moment.
PRICE ACTION LEVELS
Resistances
Price has breached $8.7k currently, although we need to see some significant trading above in both time and distance above before saying we have broken above this resistance. A daily candle close would be comforting.
Above $8.7k our sights are set on the .5 fib around $9.1k.
Following $9.1k we move our attention back to the intermediate zone of resistance at $9.4k.
Supports
Price looks to be finding strong support from the $8.2k-8.1k zone as price made a higher low on the 4H time frame, showing supply is diminishing.
Should we fall below $8.1k the next level of importance is $7.7k.
INDICATORS
Moving Averages (same situation as yesterday)
The 50 MA held as support for now. The next test is to see if we can turn around and break back above the 200 EMA after breaking below it so recently. Above that we still have the prevalent 200 simple moving average to breach.
Ichimoku Cloud
The 1D cloud remains intact with the tenkan above around $9.1k. Zooming into the 4H this level is also important as the kijun hovers around there as well. As stated before, based on cloud metrics, as long as we stay in the cloud the opposite edge of the cloud ($11.7k) remains in play.
Oscillators
We see the daily oscillators crossing out of the oversold zones and upwards, supporting any bullish movement. There is still quite some room for them to expand upwards so should bulls make a move throughout the week the oscillators are on their side.
Conclusion
At the end of the day, there seems to be a new trading range between $8.1 to around $8.7k, so a move directly upwards from here ($8750) will resolve this and set up a bullish move back higher. Should $8.1k fall the level of $7.7k remains very important with a lot of open air beneath it.
Twitter: @BoomerCapital
Web: boomerangcapital.org
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