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May 29, 2018, 10:45:06 PM |
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Strong bounce off of the buy zone we highlighted throughout the week. A break and hold above $7.5k will be the beginning of a short-term uptrend.
Resistances & Supports.
Resistances - Yesterday's resistance levels still in place.
Now that price has fallen below the intermediate level at $7.5-7.4k, this will act as resistance on the way back up. Above $7.5k we will begin to set our sights on the higher levels such as $7.9-7.7k.
Supports - Yesterday's support levels still in place.
At the moment we are coming down to a very important support zone from $7.2-6.9k. This is an important level to hold due to it being an important fib level and the diagonal trendline support for the symmetrical triangle pattern in play.
Classical Chart Patterns.
The larger time frame symmetrical triangle is still holding up as price nears the supporting trendline. Should price break and close on the daily below $6.7k this pattern will be resolved to the downside and the measure rule sets us well beneath the current bottom at $6k.
Ichimoku Cloud.
The 2H cloud, which is a good representation of a lower time frame trend, has rejected price on each attempt upwards. A break above the cloud on the 2H, which lines up with the $7.9-7.7k resistance levels we have highlighted, would be a very bullish signal.
Oscillators.
The daily stoch oscillator is bouncing from lows we have not seen in over TWO YEARS. The fact that we are reaching this low on the oscillator and have yet to make lower lows shows that sellers are losing control on price action.
Conclusion
At the moment price is painting a very strong bullish engulfing candle on the daily chart. With oscillators set up for upside and price bouncing off of support, this could have very well been the short-term bottom. A break above $7.5k will set up a bullish lower time frame market structure and turn that level of resistance into support.
Twitter: @BoomerCapital
Web: boomerangcapital.org
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