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April 26, 2018, 09:18:16 PM |
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Consolidation occurring during the down move. Stronger support below at $8.4k.
PRICE ACTION LEVELS Resistances - Price has fallen below the $8.9-$9.2k zone of support, making this the first zone of resistance as we rise back towards previous high. Above that the $9.75k zone, in line with the .382 fib, will likely give price a fight as it rises towards $10k.
Supports - Price is above a stronger zone of support from $8.6-8.4k which is in confluence with the .618 fib.
INDICATORS Moving Averages (same situation as yesterday) - The ever important 200 MA on the daily chart is now lined up with a zone of resistance we have from $9.8-10k. A break above this would be huge for bullish confidence. We also now see the 200 EMA acting as support as prince pinballs between these two indicators.
Ichimoku Cloud (same situation as yesterday) - The 4H cloud has provided perfect bounce support off the kijun. We will see if this holds.
Oscillators - A bit of a concern, we see the daily RSI has fallen back below to the historic level of bearish movement. That said, the RSI is not a fool-proof, all-revealing indicator.
Conclusion. Price is losing momentum in the move downwards, consolidating for the moment. An uptrend is defined by higher highs and higher lows, the higher high above $9.2k is the start, now it is nothing but necessary that we post a higher low. Until we break below $7.8k there is nothing to worry about
Twitter: @BoomerCapital Website: boomerangcapital.org
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